Investigating the effect of corporate social responsibility on the relationship between related party transactionsand Firm value

In recent financial scandals, related party transactionshave been a major concern. Acquisition of company resources through transactions with affiliates is common in developed countries, but in emerging economies due to the lack of foreign markets and poor corporate governance is more common, and this can have significant effects on the value of companies. Disclosure of non-financial information, including corporate social responsibility, can reduce the destructive effects and ethical concerns in the field of management and serve as a mechanism to reduce the opportunistic behaviors of managers. Therefore, based on this argument, the present study examines the relationship between the related party transactions and firm value of the company with emphasis on the moderating role of corporate social responsibility. For this purpose, the Livestock and Schultenchecklist [13]is used to measure the company's social responsibility. The hypotheses are tested using the statistical method of regression analysis with composite data using the information of 138 companies listed on the Tehran Stock Exchange during the years 2014 to 2019. The findings of the first hypothesis of the research indicate that there is a significant relationship between the related party transactions and firm value. Also, the result of the second hypothesis show that the social responsibility of the company weakens the negative effect of the related party transactions and firm value.