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
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
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