Corporate social responsibility and firm performance: evidence from India’s national stock exchange listed companies

Jayasree Mangalagiri () and Malla Praveen Bhasa ()
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Jayasree Mangalagiri: GITAM University
Malla Praveen Bhasa: LemonBridge Research

International Journal of Disclosure and Governance, 2022, vol. 19, issue 2, No 2, 144-152

Abstract: Abstract The paper aims to empirically investigate the influence of corporate social responsibility (CSR) on firm performance in Indian listed firms. We use regression analysis to determine the relationship between CSR and firm performance. Both accounting and market measures of firm performance have been deployed for the purpose of the study. We have found mixed evidence. While CSR has a positive impact on the accounting measure, it has a weak relationship with market-based returns. Our most significant finding in the study is that markets do not perceive the standard mandated CSR spends worthy of a reward. Instead, such spends are considered hygiene whereas expenditure made by firms in excess of the mandated CSR spends is rewarded by markets for their CSR conscious behaviour. We therefore advise the Indian companies to spend beyond the mandated CSR outlays if they are to improve on their market value.

Keywords: Corporate social responsibility; Firm performance; India; National stock exchange of India (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41310-021-00138-w

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