Corporate Social Responsibility, Stock Price Crash Risk, Information Asymmetry: A Moderated Perspective

Abstract

This research aims to examine the impact of information asymmetry on the relationship between corporate social responsibility (CSR) and stock price crash risk among 112 companies listed on the Tehran Stock Exchange from 2018 to 2022. Multiple linear regressions were used to test the hypotheses. The findings indicate a negative and significant relationship between CSR and stock price crash risk. Additionally, the results show that information asymmetry moderates and strengthens the relationship between CSR and stock price crash risk. Consequently, companies that adhere to CSR requirements can reduce the risk of stock price crashes, and in companies with information asymmetry, CSR can further mitigate this risk.

Keywords

• corporate social responsibility
• information asymmetry
• stock price crash risk