A Survey of Relationship between Stock Returns and Social Responsibility during the Life Cycle in listed Companies in Tehran Stock Exchange

The purpose of the present study is to investigate the relationship between stock returns and social responsibilities during the life cycle of listed firms in Tehran Stock Exchange. In this study, the relationship between stock returns and firms’ social responsibility is examined in the growth, maturity and decline phases. For this purpose, a sample consisting of 108 firms listed in Tehran Stock Exchange during the six year period from 2009 to 2014 has been studied. As the dependent variable in this research has two options, the logit regression is used. In addition, with respect to the binary state of dependent variable, the model used in the study is Binary Logit Regression Model. The results of testing the hypotheses show that there is a significant relationship between stock returns and firms’ social responsibility in growth phase. This means that stock returns increase the likelihood of being included in the category of firms with social responsibility in the growth phase. In other words, stock returns increase the social responsibility. The research results also indicate that there is no significant relationship between stock returns and firms’ social responsibilities at the maturity and decline phases.

کلیدواژه ها:

Firm s Life Cycle ، Stock Return ، Social Responsibility