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Impact of Corporate Social Responsibility on the Financial Performance of Indian Companies

Sangolli, Rishika Shivkumar (2020) Impact of Corporate Social Responsibility on the Financial Performance of Indian Companies. Masters thesis, Dublin, National College of Ireland.

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CSR is also considered as self-regulation practices which are integrated within the business model of companies and organisations. The main aim behind conducting the present research is to assess the influence of CSR on the financial performance of the different Indian companies. For many businesses CSR can be regarded as the proactive business strategy along with marketing technique for the business in order to attain competitive advantage. In the current investigation sample size is 20 Indian companies listed in the Indian stock exchange. The main sources from where data has been collected involve annual report and CSR/sustainability report of selected companies, CSR website of Indian government, Reuters database and other online websites. CSR spending of the companies from the year 2013-2018 has been considered along with the information of the financial variables such as Net Profit, Return on Invested Capital, Enterprise Value, Asset Turnover Ratio, Revenue, EBITDA, and Operating Profit.
Regression model has been applied in order to identify the significance between CSR and financial variables. Reliance industries Ltd is the one of the top performing firm in the area of CSR. It has been found that CSR impacts positively on the financial indicators such as Net Profit, Enterprise Value, EBITDA, and Operating Profit of the selected companies. Considering the correlation analysis between CSR spending and Net profit of the companies it has been found that in case of some companies such as Indian Oil, Tata steel, Infosys ltd and Bharat Petroleum Corporation Ltd correlation is highly positive.
On the other side of this, moderate correlation is present between the average revenue of companies and the CSR spending and it states that CSR spending of the companies is somehow dependent on the revenue of the entities. Considering the variable such as EBITDA, it has been identified through regression that CSR has positive relationship with the EBITDA of the companies.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Corporate Governance
H Social Sciences > HG Finance > Financial Management
Divisions: School of Business > Master of Science in Finance
Depositing User: Mr Kevin Loughran
Date Deposited: 28 May 2021 15:59
Last Modified: 28 May 2021 15:59

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