Economic Policy Uncertainty and Labor Investment Efficiency: The Mediating Role of Corporate Social Responsibility Disclosure

Document Type : Research Paper

Authors

1 Associate Prof., Department of Accounting and Auditing, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

2 Assistant professor, Faculty of Tourism, College of Management, Tehran University, Tehran, Iran.

3 MSc. Department of Accounting, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

4 Ph.D. Candidate, Department of Accounting, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

Abstract

This study investigates the impact of Economic Policy Uncertainty (EPU) on the efficiency of labor investment and explores the mediating role of Corporate Social Responsibility (CSR) disclosure in this relationship. Using data from firms listed on the Tehran Stock Exchange over the period 2013 to 2023 and applying regression models, the results indicate that higher levels of EPU are significantly associated with reduced efficiency in labor investment. Moreover, CSR disclosure is significantly related to a decrease in labor investment inefficiency. The mediation analysis reveals that part of the negative effect of EPU on labor investment efficiency is transmitted through a reduction in the level of CSR disclosure. These findings suggest that under conditions of increased EPU, firms' performance in allocating human capital investments efficiently is disrupted, and this disruption is exacerbated by lower levels of CSR disclosure.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 17, Issue 2
February 2025

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History

  • Receive Date: 29 May 2025
  • Revise Date: 22 October 2025
  • Accept Date: 28 October 2025

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