Investigating the impact of monetary policies and social responsibility on the efficiency of the company's investments in companies admitted to the Tehran Stock Exchange

Document Type : Original Article

Authors

1 گروه حسابداری دانشگاه آزاد اسلامی

2 گروه حسابداری، دانشگاه غیر انتفاعی پرندک

3 گروه حسابداری دانشگاه غیر انتقاعی پرندک

Abstract

Objective: Achieving economic growth and development, including increasing employment levels, controlling inflation, and balancing the balance of payments, has always been among the ultimate goals of countries. To this end, the tools of government fiscal policy and the central banks monetary policy serve as levers that countries employ to attain their final objectives. Therefore, the aim of the present research is to investigate the impact of monetary policy and corporate social responsibility on the investment efficiency of companies listed on the Tehran Stock Exchange.
Methods: This research is applied in terms of its objective and analytical in terms of its nature. For data collection, financial statements of companies listed on the Tehran Stock Exchange were utilized, and for hypothesis testing, multiple regression models were employed. The research sample consists of 105 companies over the years 2016 to 2023.
Results: The results indicate that the interest rate has a positive and significant impact on the efficiency of companies’ investments. In contrast, the exchange rate has a negative and significant impact on investment efficiency. Additionally, social capital exerts a positive and significant influence on investment efficiency.
Conclusion: Determining the real interest rate percentage through controlling the level of liquidity in the country can guide cash flows toward real investments in the economy. As a result, companies gain better access to financial resources for implementing investment projects and can secure the necessary funds through financial institutions or the capital market. In essence, companies require financing for their investment projects by obtaining these resources via debt or equity issuance, which, with the increase in expected rates of return and financing costs for the company, also leads to a reduction in the returns from the efficiency of companies’ investments.
Innovation: Attention to social capital in companies can lead to improved investment efficiency. Engaging in social activities enables companies to gain competitive advantages, prioritize the interests of all stakeholders, and enhance investment efficiency by facilitating access to financial resources, which in turn results in increased benefits and reduced agency costs. Monetary policy mechanisms do not serve as an indicator of the value of liquid assets. However, raising interest rates can promote investment efficiency. In essence, accurately determining the real interest rate through controlling the level of liquidity in the country can direct cash flows toward genuine investments in the economy.

Keywords

References

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History

  • Receive Date: 10 November 2024
  • Revise Date: 08 February 2025
  • Accept Date: 07 March 2025
  • First Publish Date: 23 August 2025
  • Publish Date: 23 August 2025

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