Title: Corporate social responsibility and financial performance in selected companies of India: an event study approach

Authors: Neena Sinha; Miklesh Prasad Yadav; Timcy Sachdeva

Addresses: GGISPU, USMS, Dwarka, New Delhi, India ' Indian Institute of Foreign Trade, Kakinada, India ' Vivekananda Institute of Professional Studies, Delhi, India

Abstract: The present study examines the impact of corporate social responsibility (CSR) on financial performance of Indian companies. The proxies for the CSR and financial performance are sustainability award announced by Confederation of Indian Industry (CII-ITC) and stock price. The study is based on the 32 companies awarded by CII-ITC Sustainability Award during 2010-2011 to 2016-2017. After collecting the data of stock price of entire sample companies, an event study methodology has been applied to observe the impact of corporate social responsibility on abnormal return in window period -40 days to +40 days considering window estimation period 200 days. The results reveal insignificant relationship between CSR and financial performance during pre and post announcement of sustainability award.

Keywords: corporate social responsibility; CSR; financial performance; sustainability awards; event study; shareholders wealth; India.

DOI: 10.1504/IJBG.2022.127372

International Journal of Business and Globalisation, 2022 Vol.32 No.2/3, pp.322 - 335

Received: 25 Sep 2019
Accepted: 22 Sep 2020
Published online: 01 Dec 2022 *

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