The IUP Journal of Accounting Research and Audit Practices:
Impact of CSR on Financial Performance: An Empirical Study of Publicly Traded Companies in India †

Article Details
Pub. Date : Oct, 2022
Product Name : The IUP Journal of Accounting Research and Audit Practices
Product Type : Article
Product Code : IJARAP081022
Author Name : Abhineet Saxena, Garima Sharma and Priti Saxena
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 19



The purpose of this study is twofold: first, it investigates the impact of corporate social responsibility (CSR) on financial performance (FP) in BSE listed Indian companies; second, it examines which of the five dimensions selected for the study, viz., Value-Added Measure (VAM), Market Measure (MM), Growth Measure (GM), Earning Measure (EM) and Profitability Measure (PM), plays a mediating role in the relationship between CSR and FP. The sample comprises 471 companies. The data was sourced from CMIE Prowess IQ repository for a period of 5 years from 2015 to 2020. Structural Equation Modeling was administered to study the impact of CSR on each of the five dimensions of FP. The key findings are: (1) CSR has a positive impact on all dimensions of FP; (2) the impact of CSR investment is highest on value added measures; and (3) the positive impact of CSR on FP indicators holds true across primary, secondary and tertiary sectors.


The Indian government is making all possible efforts to fast-track economic development and achieve the ambitious target of $5 tn GDP; however, paradoxically ours is a country fraught with many inadequacies such as poverty, lack of sanitation, lack of education, gender inequalities, governance issues, inaccessible healthcare facility and environmental, social and governance issues. Without taking adequate steps to mitigate these issues, economic development will hold little meaning.