The Role of Corporate Social Responsibility Spending on Firm Performance with Earnings Management as a Moderating Variable: Evidence from the Indian Market

Q2 Business, Management and Accounting

Business Perspectives and Research Pub Date : 2024-01-03 DOI:10.1177/22785337231208293

Gayas Ahmad, Mohammad Haseeb, M. Hossain, Waseem Alam, Feeroz Hayat, Mohammad Shahid

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Abstract

This study seeks to examine the influence of corporate social responsibility (CSR) spending on firm performance (FP) and supplementary examine the contraction effect of CSR spending and earning management (EM) on the FP in the setting of Indian companies. The sample size employed in this study is 82 companies from S&P BSE 100 index during 2015&–2021. Further, Tobin&’s Q is used as an indicator for measuring the FP. The modified Jones model is employed as a proxy to quantify EM in the form of discretionary accruals (DACC). The methodological model for analysis followed in the work is pooled ordinary least square. The study reveals pragmatic evidence that enterprises engaged in the exercise of EM have no encouragement in CSR spending. In addition to this, the second hypothesis, based on EM, CSR, and earnings management, negatively influences FP in the Indian context. The results of this research will be of certain interest to business owners who want to gauge the efficacy of directors&’ and managers&’ sustainability choices, as well as investors and public authorities who want to evaluate the positive correlation between CSR and a company&’s performance and image, and therefore, the favorable impact on the firm&’s performance.

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以收益管理为调节变量的企业社会责任支出对公司业绩的影响：来自印度市场的证据

本研究旨在考察企业社会责任（CSR）支出对公司业绩（FP）的影响，并以印度公司为背景，补充考察企业社会责任支出和收入管理（EM）对公司业绩（FP）的收缩效应。本研究采用的样本量为 2015-2021 年期间标准普尔 BSE 100 指数中的 82 家公司。此外，托宾 Q 值被用作衡量 FP 的指标。采用修正的琼斯模型作为替代，以全权应计项目（DACC）的形式量化EM。工作中采用的分析方法模型是集合普通最小二乘法。研究揭示了一个实用的证据，即参与企业经营管理的企业并不鼓励企业社会责任支出。此外，在印度背景下，基于市场营销、企业社会责任和收益管理的第二个假设对 FP 有负面影响。这项研究的结果将对那些希望衡量董事和经理的可持续发展选择是否有效的企业主，以及那些希望评估企业社会责任与公司业绩和形象之间的正相关性，从而对公司业绩产生有利影响的投资者和公共机构产生一定的意义。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Business Perspectives and Research Business, Management and Accounting-Business and International Management

CiteScore

5.00

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0.00%

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期刊介绍： Business Perspectives and Research (BPR) aims to publish conceptual, empirical and applied research. The empirical research published in BPR focuses on testing, extending and building management theory. The goal is to expand and enhance the understanding of business and management through empirical investigation and theoretical analysis. BPR is also a platform for insightful and theoretically strong conceptual and review papers which would contribute to the body of knowledge. BPR seeks to advance the understanding of for-profit and not-for-profit organizations through empirical and conceptual work. It also publishes critical review of newly released books under Book Review section. The aim is to popularize and encourage discussion on ideas expressed in newly released books connected to management and allied disciplines. BPR also periodically publishes management cases grounded in theory, and communications in the form of research notes or comments from researchers and practitioners on published papers for critiquing and/or extending thinking on the area under consideration. The overarching aim of Business Perspectives and Research is to encourage original/innovative thinking through a scientific approach.