Are CSR-compliant firms more resilient during health crises?

Sabri Boubaker, Vineeta Kumari, Riadh Manita and Dharen Kumar Pandey

International Journal of Business Governance and Ethics, 2025, vol. 19, issue 3/4, 275-300

Abstract: The study examines the relationship between corporate social responsibility (CSR) and stock returns during times of crisis, such as pandemics. During these times, companies often experience decreased demand, reduced profits, and increased financial risk, leading to lower stock returns. Studying 869 Indian-listed firms during 2019-2020, we show that the global pandemic negatively affected firms' returns and that CSR-compliant firm tend to perform better than non-compliant firms after the event. The study also shows that CSR expenditure positively impacts stock returns during the pandemic. The findings contribute to the existing literature on the role of CSR in firm resilience and provide evidence of the impact of CSR on stock returns during times of crisis.

Keywords: corporate social responsibility; CSR; COVID-19; event study; abnormal returns. (search for similar items in EconPapers)
Date: 2025
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