Corporate Social Responsibility and Stock Price Crash Risk: Evidence from an Emerging Market

The main purpose of this study is to investigate the relationship between corporate social responsibility (CSR) and stock price crash risk of companies listed on Tehran Stock Exchange (TSE). The empirical data include 75 companies listed on the TSE, over a ten-year period from 2007 to 2016. Content analysis is used for measuring the CSR. In addition, a negative skewness was used to measure stock price crash risk. The statistical analysis of multiple linear regression was used to test the research hypotheses. The results of the researchers’ analysis indicated that there is a significant and negative relationship between CSR and stock price crash risk. The present study contributes to the literature by providing empirical evidence about the role of CSR in stock price crash risk from an Islamic and developing country.