The Impact of Corporate Social Responsibility and Financial Transparency on Investor Trust: Evidence from the Tehran Stock Exchange

Authors

  • Asiyeh Ahmadiniya Sani * Department of Accounting, Shafagh Higher Education Institute, Tonekabon, Iran.
  • Abuhamze Fazel Saatchi Department of Accounting, Shafagh Higher Education Institute, Tonekabon, Iran.

https://doi.org/10.22105/tqfb.v3i1.78

Abstract

The main objective of this study is to examine the relationship between Corporate Social Responsibility (CSR) and financial transparency with investor trust. Given the crucial role of trust in the efficiency of financial markets and investors’ decision-making processes, identifying the factors that can enhance this trust is of significant importance. Accordingly, this research adopts a quantitative approach and employs a descriptive–correlational method. The required data were collected using a standardized questionnaire, and the statistical population consisted of investors and market participants, from whom a sample was selected using convenience sampling. Data analysis was performed through normality testing, correlation analysis, and multiple regression modeling using SPSS software.

The findings reveal that CSR has a positive and significant effect on investor trust and represents the strongest predictor in the regression model. Financial transparency also demonstrates a positive and significant association with investor trust, indicating that higher levels of financial disclosure can reduce information asymmetry and increase investors’ confidence. Overall, the results highlight that the combination of socially responsible behavior and transparent financial reporting plays an essential role in strengthening investor trust and improving the relationship between companies and their stakeholders. These findings offer practical implications for corporate managers, investors, and policymakers aiming to enhance organizational transparency and accountability.

Keywords:

Corporate social responsibility, Financial transparency, Investor trust, Capital market, Financial reporting, Information asymmetry

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Published

2025-12-28

Issue

Vol. 2 No. 4 (2025): Transactions on Quantitative Finance and Beyond

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Articles

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How to Cite

Ahmadiniya Sani, A., & Fazel Saatchi, A. (2025). The Impact of Corporate Social Responsibility and Financial Transparency on Investor Trust: Evidence from the Tehran Stock Exchange. Transactions on Quantitative Finance and Beyond, 2(4), 277-284. https://doi.org/10.22105/tqfb.v3i1.78
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