The Study of the Relationship Between Government Firms, Dimensions of Corporate Sustainability Performance and Firm Value

Document Type : Research Paper

Authors

1 PhD. student of Accounting, Sari Branch, Islamic Azad University, Sari, Iran.

2 Associate Professor in Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran.

3 Assistant Professor in Accounting, Sari Branch, Islamic Azad University, Sari, Iran.

Abstract

The purpose of this study is to investigate the relationship between the government firms (concentration of government ownership) and the dimensions of corporate sustainability performance. In this study, the effect of corporate sustainability performance on the market value, as well as the effect of moderating the concentration of government ownership on this relationship is examined.
In this research, 93 companies listed in Tehran Stock Exchange during the years 2010 to 2016 (651 firm-years) were investigated. To measure corporate sustainability, the KLD Index has been used in five dimensions: social, environmental, governance, ethics, and economics.
The findings of the research showed that the government firms (concentration of government ownership) has a significant positive relationship with the environmental, governance, ethical, economic, and overall corporate governance performance. There was no significant relationship between the concentration of government ownership and the social dimension of sustainability. In addition, the results showed that corporate sustainability performance has a significant positive effect on the market value of firms. But the government firms (concentration of government ownership) did not have significantly affect the relationship between corporate sustainability performance and market value.
 

Keywords

References

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Governmental Accounting
Volume 4, Issue 2 - Serial Number 8
September 2018
Pages 75-92

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History

  • Receive Date: 15 September 2018
  • Revise Date: 24 November 2018
  • Accept Date: 20 February 2019

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