Title: Are CSR-compliant firms more resilient during health crises?

Authors: Sabri Boubaker; Vineeta Kumari; Riadh Manita; Dharen Kumar Pandey

Addresses: EM Normandie Business School, Métis Lab, France; International School, Vietnam National University, Hanoi, Vietnam; Swansea University, Swansea, UK ' P.G. Department of Commerce, Magadh University, Bodhgaya, Bihar, 824234, India ' NEOMA Business School, 1 Rue du Maréchal Juin, 76130 Mont-Saint-Aignan, France ' P.G. Department of Commerce, Magadh University, Bodhgaya, Bihar, 824234, India

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.

DOI: 10.1504/IJBGE.2025.146330

International Journal of Business Governance and Ethics, 2025 Vol.19 No.3/4, pp.275 - 300

Received: 28 Feb 2023
Accepted: 13 May 2023
Published online: 22 May 2025 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article