Title: Impact of CSR spending on corporate financial performance – empirical evidence from the Indian manufacturing sector

Authors: J. Sreepriya; K.R. Suprabha

Addresses: School of Management, National Institute of Technology Karnataka, Surathkal, Mangalore – 575025 Karnataka, India ' School of Management, National Institute of Technology Karnataka, Surathkal, Mangalore – 575025 Karnataka, India

Abstract: The article's prime objective is to explore the influence of corporate social responsibility (CSR) spending on the corporate financial performance (CFP) of Indian manufacturing firms. The study examines a sample of 233 manufacturing firms listed on the Nifty 500 index over six years from 2014 to 2019. The author has used the generalised method of moments (GMM) to study the impact of CSR spending on corporate financial performance. Additionally, the pooled ordinary least square (POLS) and random effect model (REM) were employed to confirm the validity and robustness of the model. The findings add to the existing discussion by revealing a mixed but significant association between CSR spending and CFP. CSR investment has a short-term negative impact on profitability, however, a positive influence in the long run. Furthermore, both long- and short-term CSR spending positively affects firm value. The study's outcome delivers insights for managers, policymakers, and academics.

Keywords: CSR spending; corporate financial performance; generalised method of moments; GMM; Indian manufacturing sector.

DOI: 10.1504/IJBEX.2026.151658

International Journal of Business Excellence, 2026 Vol.38 No.2, pp.240 - 261

Received: 28 Feb 2022
Accepted: 05 Mar 2022
Published online: 12 Feb 2026 *

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