Title: Sustainability practices and corporate risk: a panel quantile regression analysis

Authors: Tej Singh; Meera Bamba; Bharti Verma

Addresses: Department of Commerce, Indira Gandhi University, Meerpur, Rewari, Haryana, India ' Department of Commerce, Indira Gandhi University, Meerpur, Rewari, Haryana, India ' Department of Commerce, Indira Gandhi University, Meerpur, Rewari, Haryana, India

Abstract: This study investigated the impact of corporate sustainability performance, measured through CSR expenditure, on corporate risk. Analysing 1,566 (174 firms * 9 years) firm-year observations from 2016-2024 utilising OLS regression, the findings indicate that spending on CSR significantly reduces total risk for firms, although its impact on systematic risk is positive, yet not statistically significant. Quantile regression analysis demonstrates that CSR spending significantly reduces total risk at moderate quantiles; however, no notable effects are found at the lower and upper quantiles, which indicates that it effectively reduces the risk for firms with modest risk levels. On the other hand, systematic risk has a negligible effect, with asymmetrical influence across various quantiles. Overall, the study highlights that corporate sustainability initiatives are crucial in reducing firm-specific total risks, offering valuable insights for managers seeking to integrate sustainability into risk mitigation strategies.

Keywords: corporate social responsibility; CSR; panel regression; sustainability; systematic risk; Srisk; total risk; Trisk.

DOI: 10.1504/IJBCRM.2026.152629

International Journal of Business Continuity and Risk Management, 2026 Vol.16 No.1, pp.54 - 69

Received: 18 May 2025
Accepted: 22 Nov 2025
Published online: 31 Mar 2026 *

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