The Moderating Role of External Monitoring in Influencing the Technical and Institutional Dimensions of Corporate Social Responsibility on Profitability

Adopting a citizen's perspective for participating as a member of the community brings responsibility for accountability for increased transparency and accountability. Social responsibility reporting is one of the most important tools that will have different consequences and impacts. The purpose of this study is to identify the effect of moderating role of external monitoring on the relationship between the technical and institutional dimensions of social responsibility on profitability in companies of Tehran Stock Exchange. In this study, data from 105 companies for the period 2013 to 2017 were investigated and to review the research hypothesis, panel model regression analysis was applied. The results of the research showed that social responsibility dimensions have a direct relationship with the firm's profitability. In addition, the impact of the technical and institutional dimensions of social responsibility on the company's profitability with the moderating role of external monitoring was examined. The results of the study, according to the prediction of the complementary theory, indicate that external monitoring exacerbates the positive relationship between the technical dimension of social responsibility and profitability of the company, but in the relationship between the institutional dimension of social responsibility and profitability of the company, external monitoring does not play a moderating role.