Relationship between different dimensions of corporate social responsibility based on the model Nirwanto and stock price crash risk in Tehran Stock Exchange

This study investigates whether corporate social responsibility (CSR) mitigates or contributes to stock price crash risk in the listed companies in Tehran stock exchange. The study is a kind descriptive and correlational-practical one. . All listed companies in Tehran stock exchange were selected as statistical population during 2009 to 2013. There are 125 listed companies in this research. CSR and stock price crash risk are regarded as independent and dependent variables. Also, four control variables of DTURNOVER, Ret, Mb, Size, Sigma, Lev, ROA and ABACC are used here. Hence, four hypotheses were provided and the related data were collected. For the measurement of corporate social responsibility from a formula that Nirwanto has to offer and for measuring the crash risk of stock price of the indicators of Hutton et al is used. The research’s results demonstrate that there is a significant association between level of corporate social/ Employee relations/ production responsibility and crash risk in Tehran stock exchange. On the contrary, there is no significant relationship between social responsibility related to the environment and crash risk of stock price.