حبیب تقی نسب

Objectives: This study aims to investigate the effect of unconditional conservatism on capital cost, considering the role of corporate social responsibility. The research seeks to understand how these factors interact and influence the overall cost of capital for firms. Methodology/Design/Approach: To achieve this purpose, the modified model by Givoly and Hayn (2000) was employed to calculate unconditional conservatism, following the methodologies of previous studies such as Krishnan and Viswanathan (2008) and Ahmed and Dolman (2007). This model emphasizes the estimation of unconstrained conservatism based on standardized accruals relative to total assets (TA). The criteria used to measure corporate social responsibility were adapted from Anis and Utah (2016). Data were collected from a sample of 102 firms listed on the Tehran Stock Exchange over a five-year period from 2018 to 2022. Multivariate regression analysis of panel data was utilized for data analysis. Findings: The results of the hypothesis testing revealed that social responsibility has a negative and significant effect on corporate capital cost, while unconditional conservatism does not exhibit a significant effect on the cost of capital. Additionally, a positive and significant relationship was found between unconditional conservatism and social responsibility. Innovation: This research contributes to the existing literature by exploring the interplay between unconditional conservatism, corporate social responsibility, and capital costs within the context of Iranian firms. It highlights the importance of understanding how social responsibility initiatives can influence financial metrics, thereby providing practical insights for managers aiming to optimize capital costs through enhanced corporate governance practices.