Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of accounting conservatism on the relationship between corporate social responsibility disclosure and financial debt in companies listed on the Tehran Stock Exchange.

Document Type : Original Article

Author
Elaheh Mohammadhosseini
Department of Accounting, national university of skills (NUS), Tehran, Iran
Abstract
Corporate Social Responsibility (CSR) refers to a set of actions and commitments undertaken by companies to create a positive impact on society and the environment. Accounting conservatism, as an approach to managing uncertainty and mitigating risk, can influence corporate financial and investment decisions. This study examines the impact of accounting conservatism on the relationship between CSR disclosure and financial debt in companies listed on the Tehran Stock Exchange (TSE). Using financial data from 163 companies between 2015 and 2022, analyzed through multivariate regression and panel data methods, the findings indicate no significant relationship between CSR and financial debt, meaning that CSR disclosure alone does not affect corporate debt levels. However, the interaction between CSR and accounting conservatism has a positive and significant effect on financial debt, suggesting that conservative CSR disclosure enhances creditors' trust and facilitates easier access to financial resources. These results underscore the importance of integrating conservative approaches with CSR disclosure to improve corporate financial conditions.
Keywords
Accounting conservatism
corporate social responsibility
financial debt

Subjects