The relationship between managerial entrenchment and firmrisk-takingon social responsibility disclosure

The current study aims to investigate the relationship between managerial entrenchment and firm risk-taking and corporate social responsibility in two developing countries. The study is carried out based on the information from listed firms on the Tehran and Iraq Stock Exchange by selecting a sample of 121 firms in the Iranian side and 37 firms in the Iraqi side during 2011-2017. Hypothesis testing is performed using panel estimators in the adjusted regression model. The results show a significant relationship between managerial entrenchment and social responsibility disclosure and firm risk-taking both in the Iranian and Iraqi Stock Exchange. Moreover, no relationship was evident between social responsibility disclosure and firm risk-taking. On the other hand, results show that in firms with higher risk-taking, there is a strong relationship between managerial entrenchment and social responsibility both in the Iranian and Iraqi firms.