Title: CSR expenditure and company performance: financial evidence from NIFTY 500 companies

Authors: Pooja Gupta; Amol Agarwal; Mafruza Sultana; Asit K. Barma

Addresses: Jagdish Sheth School of Management, Bengaluru, India ' EY, Gurugram, Haryana, India ' Bharathidasan Institute of Management, Tiruchirappalli, Tamil Nadu, India ' Bharthidasan Institute of Management, Tiruchirappalli, Tamil Nadu, India

Abstract: The study aims to examine the effect of social responsibility expenditures on corporate performance of companies in India for the duration of five financial years after mandating CSR for Indian companies as per The Companies Act 2013. The study tries to identify whether the impact of CSR expenditure on corporate performance differs or varies on an industry-to-industry basis. The companies considered are traded on the NIFTY 500 Index of National Stock Exchange. Five years of data from the financial year 2013-2014 to 2018-2019 have been collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database. CSR expenditure is seen to have a considerable effect on both returns on assets and Q ratio. The results also show that the impact of CSR expenditure on the corporate performance of businesses in different industries and control variables, size of the firm, and leverage of the firm vary for the industries.

Keywords: CSR expenditure; social responsibility; performance; financial evidence; NIFTY 500.

DOI: 10.1504/IJMFA.2024.141722

International Journal of Managerial and Financial Accounting, 2024 Vol.16 No.4, pp.395 - 413

Received: 15 Oct 2022
Accepted: 26 Apr 2023
Published online: 01 Oct 2024 *

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