Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms
The sceptical attitude towards linking corporate social responsibility (CSR) and corporate financial performance (CFP) forms the basis of this study. The available literature concentrates only on the positive side of CSR activities and benefits derived from them. The Companies Act, 2013, has made it...
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| Format: | Article |
| Language: | Russian |
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Government of the Russian Federation, Financial University
2023-08-01
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| Series: | Финансы: теория и практика |
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| Online Access: | https://financetp.fa.ru/jour/article/view/2310 |
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| author | R. K. Sawhney P. Goel S. B. Bhardwaj |
| author_facet | R. K. Sawhney P. Goel S. B. Bhardwaj |
| author_sort | R. K. Sawhney |
| collection | DOAJ |
| description | The sceptical attitude towards linking corporate social responsibility (CSR) and corporate financial performance (CFP) forms the basis of this study. The available literature concentrates only on the positive side of CSR activities and benefits derived from them. The Companies Act, 2013, has made it mandatory for Indian companies of a certain turnover and profit to use 2% of their profits from the past three years on CSR activities. Given this background, this study examines the impact of CSR on the financial performance of the business itself. The economic legitimacy of CSR is also probed, that is, does CSR have a positive economic impact? For this examination, the Pearson Fixed effects panel regression analysis was performed on Nifty 50 companies during the period 2010–2018. Data regarding financial performance variables was obtained from Prowess IQ database. The CSR data was collected from the companies’ annual reports and content analysis was done using NVIVO software. The results of the study provide insights into the corporate response to the mandatory requirement of CSR activities and their impact on the company’s financial performance. The results of the study conclude that there is no significant influence of CSR on the financial performance of Indian companies. |
| format | Article |
| id | doaj-art-bfb8040f32b04c44abcd00ee8d549057 |
| institution | Kabale University |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| publishDate | 2023-08-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj-art-bfb8040f32b04c44abcd00ee8d5490572025-08-20T03:59:56ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892023-08-0127413114110.26794/2587-5671-2023-27-4-131-1411064Is There Any Impact of CSR on Financial Performance? Evidence from Indian FirmsR. K. Sawhney0P. Goel1S. B. Bhardwaj2Amity University; University of DelhiAmity College of Commerce and FinanceMIT UniversityThe sceptical attitude towards linking corporate social responsibility (CSR) and corporate financial performance (CFP) forms the basis of this study. The available literature concentrates only on the positive side of CSR activities and benefits derived from them. The Companies Act, 2013, has made it mandatory for Indian companies of a certain turnover and profit to use 2% of their profits from the past three years on CSR activities. Given this background, this study examines the impact of CSR on the financial performance of the business itself. The economic legitimacy of CSR is also probed, that is, does CSR have a positive economic impact? For this examination, the Pearson Fixed effects panel regression analysis was performed on Nifty 50 companies during the period 2010–2018. Data regarding financial performance variables was obtained from Prowess IQ database. The CSR data was collected from the companies’ annual reports and content analysis was done using NVIVO software. The results of the study provide insights into the corporate response to the mandatory requirement of CSR activities and their impact on the company’s financial performance. The results of the study conclude that there is no significant influence of CSR on the financial performance of Indian companies.https://financetp.fa.ru/jour/article/view/2310corporate social responsibilitycorporate financeindiafinancial performance |
| spellingShingle | R. K. Sawhney P. Goel S. B. Bhardwaj Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms Финансы: теория и практика corporate social responsibility corporate finance india financial performance |
| title | Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms |
| title_full | Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms |
| title_fullStr | Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms |
| title_full_unstemmed | Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms |
| title_short | Is There Any Impact of CSR on Financial Performance? Evidence from Indian Firms |
| title_sort | is there any impact of csr on financial performance evidence from indian firms |
| topic | corporate social responsibility corporate finance india financial performance |
| url | https://financetp.fa.ru/jour/article/view/2310 |
| work_keys_str_mv | AT rksawhney isthereanyimpactofcsronfinancialperformanceevidencefromindianfirms AT pgoel isthereanyimpactofcsronfinancialperformanceevidencefromindianfirms AT sbbhardwaj isthereanyimpactofcsronfinancialperformanceevidencefromindianfirms |