Purpose: Modern performance evaluation systems have passed the mandatory criteria of accounting (such as accounting profit) or capital market (such as dividend). In this regard, social capital is one of the modern concepts for performance evaluation. Social capital is a broad concept describing accessible resource that causes the social aspects of human actions. In financial markets, social capital facilitates business transactions; Otherwise, doing business transactions will be costly and risky. In addition, social capital can facilitate the process of information exchange and reduce information asymmetry in the market. The aim of the current research is to investigate the relationship between the social capital of the CEO as an effective factor in the performance and awareness of the stock price and the company's risk-taking.
Methodology: The statistical population of this research is all the companies admitted to the Tehran Stock Exchange and 134 companies were selected in the period of 2016 to 2021 by systematic elimination method. Also, to test research hypotheses, multivariate regression model based on combined data was used.
Results: The results indicate that there is a direct and significant relationship between the CEO's social capital and stock price awareness. Also, there is a direct and significant relationship between the CEO's social capital and the company's risk-taking. It can be said that when the CEO's social capital in the company is high, stock price information is also more informative because managers can follow the company's policies in order to achieve legitimate and desirable goals by using their social capital.