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Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index

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  • Shafat Maqbool

    (Aligarh Muslim University)

Abstract

This study attempts to examine the impact of corporate social responsibility on financial performance in the Indian context. For this purpose, the study has selected BSE 100 index for the period of 9 years (2010–2018) as a sample study. The panel regression analysis reveals that corporate social responsibility has positive impact on concurrent profitability and stock returns. Likewise, results show that corporate social responsibility has positive impact on future profitability, potentially indicating that corporate social responsibility carries impact over a long period of time. However, positive relationship doesn’t exist between corporate social responsibility and future stock returns. Overall, the findings indicate that market compensates those firms that consciously engage with stakeholders.

Suggested Citation

  • Shafat Maqbool, 2019. "Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(3), pages 219-231, September.
    • Handle: RePEc:spr:decisn:v:46:y:2019:i:3:d:10.1007_s40622-019-00219-4
    DOI: 10.1007/s40622-019-00219-4
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    Cited by:

    1. Samar El Sayad & Ahmed Diab, 2022. "Bank Employee Perceptions of Corporate Social Responsibility Practices: Evidence from Egypt," Sustainability, MDPI, vol. 14(3), pages 1-32, February.
    2. Sarfaraz Javed & Uvesh Husain, 2021. "Corporate CSR practices and corporate performance: managerial implications for sustainable development," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(2), pages 153-164, June.
    3. Asiya Chaudhary & Shabir Ahmad Hurrah & Shafat Maqbool, 2020. "The Influence of Corporate Social Responsiblity on Actual Buying Behaviour: A Study of Indian Consumers," Metamorphosis: A Journal of Management Research, , vol. 19(1), pages 21-28, June.
    4. Choi, Yon Jung & McNeely, Connie L., 2020. "Rhetorical Framing of Organizational Identity: Corporate Social Responsibility in the Modern World Polity," SocArXiv x3fvd, Center for Open Science.

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