The Relationship between the Geographical Proximity of Institutional Owners and Disclosure of Corporate Social Responsibility by Considering the Moderating Role of Corporate Governance Mechanisms

Document Type : Original Article


Department of Accounting, Imam Reza International University, Mashhad, Iran


This research aims to investigate the impact of the geographical proximity of institutional owners on corporate social responsibility (CSR) disclosure while considering the moderating role of corporate governance mechanisms. The study examines 105 companies listed on the Tehran Stock Exchange between 2014 and 2020, using financial statements and independent auditor's reports as primary data sources. It adopts a correlational research design, categorizing it as descriptive and post-event due to its longitudinal time horizon and use of historical information. Findings suggest that ownership of local institutional owners alone does not significantly influence CSR disclosure. However, research and development expenditures and the independence and expertise of the audit committee moderate the relationship between the geographical proximity of institutional owners and CSR disclosure. Notably, companies with higher R&D expenditures and independent and specialized audit committees disclose more CSR information with increasing ownership of local institutional owners. Conversely, board independence, audit firm type, and CEO/chairman duality do not significantly affect this relationship. This study is innovative, as no previous research has explored the connection between the geographical proximity of institutional owners and CSR disclosure.


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