Corporate Social Responsibility and Firm Characteristics: Evidence from BSE 500

Forthcoming in International Journal of Information, Business and Management

Posted: 7 Nov 2012 Last revised: 3 Dec 2015

See all articles by Akshita Arora

Akshita Arora

Apeejay School of Management; Apeejay School of Management; Apeejay School of Management

Tarun Kumar Soni

Fore School of Management; NITI Aayog

Date Written: December 1, 2015

Abstract

The purpose of the paper is to test the relationship between corporate social responsibility and different firm characteristics for 500 Indian firms. Using CSR rating from Karmayog-2010 survey, the empirical analysis has been conducted using simple regression and ordered probit model. The firm performance and other variables have been extracted from PROWESS (Release 4.0), a leading database in India. We have used both accounting and market based measures to measure firm performance. The results show that CSR does not have significant relationship with the firm performance measures of the sampled firms. Further, the results indicate positive relationship of CSR with size but negative relation with leverage and firm age indicating that larger, younger and less levered firms are more active towards CSR in India than their counterparts. The results also imply that firms with higher equity shareholding are more aggressive in implementing CSR activities.

Keywords: Corporate Social Responsibility, Firm Performance, Firm Size, Leverage, Age

JEL Classification: M14, C23, C12

Suggested Citation

Arora, Akshita and Soni, Tarun Kumar, Corporate Social Responsibility and Firm Characteristics: Evidence from BSE 500 (December 1, 2015). Forthcoming in International Journal of Information, Business and Management, Available at SSRN: https://ssrn.com/abstract=2171545

Akshita Arora

Apeejay School of Management ( email )

Dwarka
Sector 8
New Delhi, DE 110007
India

Apeejay School of Management ( email )

Sector-8, Institutional area
Dwarka
New Delhi, 110075
India
110007 (Fax)

Apeejay School of Management ( email )

Sector-8, Institutional area
Dwarka
New Delhi, 110075
India
110007 (Fax)

Tarun Kumar Soni (Contact Author)

Fore School of Management ( email )

New Delhi
India

NITI Aayog ( email )

NITI Aayog
New Delhi, 100018
India

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