The Relationship Between Corporate Social Responsibility And Financial Distress by Emphasizing the role of political connections

This study investigate relationship between social responsibility and financial helplessness with the moderating role of political communication. This study is a type of applied and post-event study. To measure the social responsibility of companies were use of Meran Jouri and colleagues (2014) scale. Also, in order to measure financial distress used of the localized standard scale of Kurdistan and Tatli (2014). The statistical population is all companies listed on the Tehran Stock Exchange in the period 2015-2019, that examined data of 103 companies. To analyze the research hypotheses, the pattern of regression of fixed effects was used. The research findings indicated a negative and significant relationship between social responsibility and financial distress of companies. This means that as the level of social responsibility increases, the likelihood of companies financial distress decreases. Other results showed that political communication largely moderated the relationship between corporate social responsibility and financial distress. This means that the need to disclose social responsibilities in order to legitimize activities decreases as a result of state-owned relationships.