The Influence of Financial Restatements on the Quality and Disclosure of Voluntary Activities of Corporate Social Responsibility Reporting

Social responsibility increases social trust, improves business conditions, promotes brand, preserves the environment, and manages future crises. In this regard, considering these positive consequences and the mandatory reporting of social responsibility for listed companies in Iran, the purpose of this study is to investigate the effect of financial restatements on the quality and disclosure of voluntary activities of social responsibility reporting in the form of legitimacy and signaling theory. The current research is applied in terms of purpose and descriptive-correlation type. The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using the targeted screening method, a sample including information about 100 companies were collected, and analyzed during the years 2018-2022. In order to test the hypotheses of the research, the logistic model, and also the linear regression model have been used. The research results show that companies that have no financial restatements have more motivation for voluntary social responsibility reporting activities, which is consistent with the signaling theory and shows that business units with problems of low representation and information asymmetry are more inclined to carry out voluntary measures of social responsibility reporting. Therefore, it is better for companies to engage in voluntary social responsibility reporting activities in order not only to use the competitive advantage and its marking, but also to benefit from the advantage of increasing future performance.