Social expenditure, business responsibility reporting score and firm performance: empirical evidence from India

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2023-04-04 DOI:10.1108/cg-04-2022-0173

Chandra Shekhar Bhatnagar, Dyal Bhatnagar, Pritpal Singh Bhullar

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引用次数: 0

Abstract

Purpose The purpose of this study is to examine the impact of corporate social responsibility (CSR) expenditure and business responsibility report (BRR) on a firm’s financial performance. Additionally, the study explores whether CSR expenditure and firm performance are related linearly or otherwise. The study also assesses the influence of mandating CSR expenditure on a firm’s performance. Design/methodology/approach The study is set in India and uses a nine-year data set from 165 companies listed on the Bombay Stock Exchange. Data compilation and analysis are done by using content analysis and panel data regressions. Findings The main findings of the study are that the effect of CSR expenditure on firm performance in India is non-linear and can be characterized as parabolic for investigated firms. While some performance indicators suggest a U-shaped relationship, others show an inverted U-type pattern, making a definitive conclusion elusive in either direction. BRR scores themselves have a positive impact on firm performance. Mandatory CSR expenditure affects the financial performance negatively, but the market performance improves in general. Originality/value The study provides new insights on the relationship between CSR expenditure, BRR scores and firm performance from India, which is not only a notable emerging market but also has other gripping characteristics. It has a prolific history of philanthropy, and yet, it is the first country in the world to mandate CSR expenditure in recent times. The equation between reported economic progress and general quality of life remains intriguing, and yet the number of studies on the effects of CSR expenditure on firm performance are no match to the volume of ongoing and completed works in more developed markets. This study attempts to trim the gap and provide some useful insights for managers, policymakers and stakeholders, apart from prompting further research.

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社会支出、企业责任报告得分与企业绩效:来自印度的经验证据

本研究的目的是考察企业社会责任(CSR)支出和企业责任报告(BRR)对企业财务绩效的影响。此外，研究还探讨了企业社会责任支出与企业绩效之间是否存在线性关系。该研究还评估了强制企业社会责任支出对企业绩效的影响。设计/方法/方法这项研究以印度为背景，使用了在孟买证券交易所上市的165家公司9年的数据集。采用内容分析和面板数据回归对数据进行整理和分析。本研究的主要发现是，印度企业社会责任支出对企业绩效的影响是非线性的，对于被调查的企业来说，可以表征为抛物线。虽然一些业绩指标显示出u型关系，但其他指标则显示出倒u型关系，这使得在任何一个方向上都难以得出明确的结论。BRR分数本身对企业绩效有正向影响。强制性企业社会责任支出对财务绩效有负向影响，但总体上改善了市场绩效。独创性/价值这项研究为印度企业社会责任支出、BRR得分和企业绩效之间的关系提供了新的见解，印度不仅是一个引人注目的新兴市场，而且还有其他引人注目的特点。它有着丰富的慈善历史，然而，它是近年来世界上第一个规定企业社会责任支出的国家。报告的经济进步和一般生活质量之间的等式仍然很有趣，然而，关于企业社会责任支出对公司绩效影响的研究数量与更发达市场中正在进行和已完成的工作数量并不匹配。本研究试图弥补这一差距，并为管理者、政策制定者和利益相关者提供一些有用的见解，同时促进进一步的研究。

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来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.