Published Online:January 2026
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP110126
DOI:10.71329/IUPJARAP/2026.25.1.231-254
Author Name:Kamal Krishna Sharma and Sanjay Kumar
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:231-254
The paper examines the moderating role of sustainability disclosure score (SDS) in the relationship between corporate social responsibility (CSR) performance and financial performance. Using firm-level data from the Nifty 500 Index (2015-2022), the study employed fixed-effects panel quantile regression to assess how SDS influences return on assets (ROA), return on equity (ROE), and Tobin’s Q (TQ). The findings reveal that CSR performance positively impacts financial performance, particularly for firms at the median and upper quantiles. However, SDS does not significantly moderate this relationship, challenging prevailing assumptions in legitimacy and signaling theories. These results highlight the need for firms to focus on substantive CSR strategies rather than mere disclosure. The study contributes to the sustainability literature by employing advanced econometric techniques and offering insights into CSR disclosure practices in emerging markets. The findings provide practical implications for policymakers and corporate decision-makers.
Corporate social responsibility (CSR) and sustainability disclosure score (SDS) have become integral elements of corporate strategy, particularly in light of escalating stakeholder expectations and regulatory demands. Organizations globally increasingly anticipate incorporating sustainable practices into their operations and transparently reporting their social and environmental impacts.