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

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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.

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Authors and Affiliations

  1. Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, 202002, India

    Shafat Maqbool

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  1. Shafat Maqbool
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Appendix: List of selected companies

Appendix: List of selected companies

Company name

 

1. ACC Ltd.

2. Havells India Ltd.

3. Adani Ports & Special Economic Zone Ltd.

4. Hero Motocorp Ltd.

5. Ambuja Cements Ltd.

6. Hindalco Industries Ltd.

7. Apollo Hospitals Enterprise Ltd.

8. Hindustan Petroleum Corpn. Ltd.

9. Ashok Leyland Ltd.

10. Hindustan Unilever Ltd.

11. Asian Paints Ltd.

12. Housing Development Finance Corpn. Ltd.

13. Aurobindo Pharma Ltd.

14. I C I C I Bank Ltd.

15. Avenue Supermarts Ltd.

16. I T C Ltd.

17. Bajaj Auto Ltd.

18. India bulls Housing Finance Ltd.

19. Bajaj Finance Ltd.

20. Indian Oil Corpn. Ltd.

21. Bajaj Finserv Ltd.

22. Indusind Bank Ltd.

23. Bajaj Holdings & Invst. Ltd.

24. Infosys Ltd.

25. Bank Of Baroda

26. J S W Steel Ltd.

27. Bharat Forge Ltd.

28. L I C Housing Finance Ltd.

29. Bharat Heavy Electricals Ltd.

30. Larsen & Toubro Ltd.

31. Bharat Petroleum Corpn. Ltd.

32. Lupin Ltd.

33. Bharti Airtel Ltd.

34. M R F Ltd.

35. Bharti Infratel Ltd.

36. Mahindra & Mahindra Financial Services L

37. Biocon Ltd.

38. Mahindra & Mahindra Ltd.

39. Bosch Ltd.

40. Marico Ltd.

41. Britannia Industries Ltd.

42. Maruti Suzuki India Ltd.

43. Cadila Healthcare Ltd.

44. Motherson Sumi Systems Ltd.

45. Cipla Ltd.

46. NMDC Ltd.

47. Coal India Ltd.

48. NTPC Ltd.

49. Colgate-Palmolive (India) Ltd.

50. Nestle India Ltd.

51. Container Corpn. Of India Ltd.

52. Oil & Natural Gas Corpn. Ltd.

53. Crompton Greaves Consumer Electricals

54. Page Industries Ltd.

55. Cummins India Ltd.

56. Petronet LNG Ltd.

57. Dabur India Ltd.

58. Pidilite Industries Ltd.

59. Divi’S Laboratories Ltd.

60. Piramal Enterprises Ltd.

61. Dr. Reddy’S Laboratories Ltd.

62. Power Grid Corpn. Of India Ltd.

63. Edelweiss Financial Services Ltd.

64. Punjab National Bank

65. Eicher Motors Ltd.

66. RBL Bank Ltd.

67. Exide Industries Ltd.

68. REC Ltd.

69. Federal Bank Ltd.

70. Reliance Industries Ltd.

71. GAIL (India) Ltd.

72. Shree Cement Ltd.

73. Glenmark Pharmaceuticals Ltd.

74. Shriram Transport Finance Co. Ltd.

75. Godrej Consumer Products Ltd.

76. Siemens Ltd.

77. Grasim Industries Ltd.

78. State Bank Of India

79. HCLTechnologies Ltd.

80. Sun Pharmaceutical Inds. Ltd.

81. HDFC Bank Ltd.

82. T V S Motor Co. Ltd.

83. Tata Chemicals Ltd.

84. UPL Ltd.

85. Tata Consultancy Services Ltd.

86. Ultratech Cement Ltd.

87. Tata Global Beverages Ltd.

88. Vedanta Ltd.

89. Tata Motors Ltd.

90. Voltas Ltd.

91. Tata Power Co. Ltd.

92. Wipro Ltd.

93. Tata Steel Ltd.

94. Yes Bank Ltd.

95. Tech Mahindra Ltd.

96. Zee Entertainment Enterprises Ltd.

97. Titan Company Ltd.

 

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Maqbool, S. Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index. Decision 46, 219–231 (2019). https://doi.org/10.1007/s40622-019-00219-4

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