Corporate social responsibility and firm market performance: a study of Indian listed companies

Bird, Ron; Duppati, Geeta; Mukherjee, Abhishek

doi:10.1504/ijbge.2016.076351

Cited by 18 publications

(18 citation statements)

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“…For instance, Manchiraju and Rajgopal (2017) found that firms forced to spend money on CSR experience a 4.1% drop in their stock price. Bird et al (2016) reached a similar conclusion. They found that although investors reacted positively when the law was announced, their opinion worsened when they realized that the law imposes significant new costs on firms.…”

Section: Prior Literature and Hypotheses Developmentsupporting

confidence: 61%

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

Bansal

Kumar

2021

RAF

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Purpose This study aims to investigate the impact of mandatory corporate social responsibility (CSR) spending legislation on the earnings management strategies of firms. Design/methodology/approach The authors use panel data regression models to analyze the data for this study. This study covers the post-legislation period, which spans over five years from the financial year ending March 2015 to the financial year ending March 2019. Findings The results show that firms manipulate accounting measures to avoid breaching the cut-off criteria for mandatory CSR. In particular, the results show that firms operating around the operating revenue threshold misclassify operating revenue as non-operating revenue. In contrast, firms operating around the net worth and net profit thresholds do downward real and accrual earnings management. These results are consistent with several robustness measures. Originality/value To the best of the authors’ knowledge, this is the first study that examines the impact of mandatory CSR spending on earnings management.

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Section: Prior Literature and Hypotheses Developmentsupporting

confidence: 61%

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

Bansal

Kumar

2021

RAF

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“…There are several single-country studies, lending credence to the approach used in the current research of a single-country study. These include India (Amaladoss et al, 2011;Bird et al, 2016;Iqbal and Kakakhel, 2016;Mishra and Banerjee, 2019;Subramaniam et al, 2017), developed countries (Battaglia and Frey, 2014;Parsa et al, 2007;Paulet and Relano, 2012), and in developing countries (Darus et al, 2014;Ehie, 2016;ElGammal et al, 2018;Nkiko, 2013). Azim and Azam (2013), Carlat (2013), Mehta and Chandani (2015), Iqbal and Kakakhel (2016) and Cook et al (2018) are among a very few studies focusing specifically on the pharmaceutical sector.…”

Section: Relationships Between Csr and Corporate Governancementioning

confidence: 99%

“…First, there is the impetus the economy has on companies engaging in CSR activities (Ghitulescu and Neves, 2012). Then, there is the issue of how these activities affect firm performance (Bird et al, 2016;Faisal et al, 2018;Focacci, 2011;Hussain, 2006;Miller et al, 2007;Sharma et al, 2019). Obi and Ode-Ichakpa (2020) investigated the effect of financial indicators on the practice of CSR in Nigeria.…”

Section: Relationships Between Csr and Corporate Governancementioning

confidence: 99%

An analysis of the ethical frameworks and financial outcomes of corporate social responsibility and business press reporting of US pharmaceutical companies

LaVan

Cook

Žilić

2021

IJBGE

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We use content analysis to discern ethical patterns of communication differences between the business press and corporate social responsibility (CSR) reports in the US pharmaceutical sector. The methodology is based on content analysis of documents in the public domain, rather than based on surveys or interviews of other empirical work, allowing for replication and transparency. The qualitative and statistical analysis of our data indicates that there are statistically significant differences between how CSR is communicated in the business press and in the CSR documents themselves. However, there was not a statistical relationship between having a formal CSR report and financial outcome as measured by return on assets. The results indicate that individuals and organisations charged with communicating the organisations' activities should be cognisant of where there are differences and should develop communication processes to assure the company is disseminating the correct message in the reporting of their CSR activities.

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Section: Hypothesis 1 (H1)mentioning

confidence: 99%

“…Initially, in India, the proposed changes to mandatory CED were generally positively received in the financial markets (Bird et al 2016). However, an initial intense debate developed [91,136,137]. In the period following enactment of the Companies Act 2013, compliance started slowly among those companies required to spend 2% (of their average net profit) on CSR activities [85,138]; indeed, companies that had been involved in CED may have reduced their spending [91].…”

Section: Hypothesis 1 (H1)mentioning

confidence: 99%

Corporate Environmental Disclosure in India: An Analysis of Multinational and Domestic Agrochemical Corporations

et al. 2019

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The existing corporate environmental disclosure (CED) research focuses primarily on large companies operating in a single jurisdiction, leaving a gap of knowledge regarding the subsidiary operations of multinational corporations. In this study, consolidated narrative interrogation (CONI) is used to quantify CEDs presented in annual and stand-alone sustainability reports published over a 15-year span between 2002 and 2016 by agrochemical companies operating in India. Results show that the diversity, the quantity, and the quality of CED vary significantly, but generally each of them has been improving over time—most notably following the revisions to the Companies Act in 2013. The study finds that the subsidiaries of multinational agrochemical corporations implemented CED practices more strongly associated with those of domestic companies than those found in the reports produced by their parent companies. The CED of both subsidiary and domestic companies appears to reflect concerns of local legitimacy.

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Corporate social responsibility and firm market performance: a study of Indian listed companies

Cited by 18 publications

References 0 publications

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

An analysis of the ethical frameworks and financial outcomes of corporate social responsibility and business press reporting of US pharmaceutical companies

Corporate Environmental Disclosure in India: An Analysis of Multinational and Domestic Agrochemical Corporations

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