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Impact of CSR Activities on Shareholders’ Wealth in Indian Companies

Publication Type : Conference Proceedings

Publisher : 2018 International Conference on Advances in Computing, Communications and Informatics (ICACCI) .

Source : 2018 International Conference on Advances in Computing, Communications and Informatics (ICACCI) (2018)

Keywords : Asia, banking, banking sector, Companies, corporate social responsibility, corporate social responsibility activities, earnings ratio, fast moving consumer goods, Indian companies, Indian stock exchanges, infrastructure sector, organisational aspects, Pharmaceuticals, pharmaceuticals sector, power-energy sector, price to earnings ratio, pricing, Regression analysis, Regression model, shareholders wealth, shareholdors' wealth, Software, software sector, stock markets

Campus : Kochi

School : School of Business

Department : Business

Year : 2018

Abstract : The main objective of the paper is to analyze the pattern of price to earnings ratios of the companies that are categorized in six different sectors - Fast Moving Consumer Goods, Banking, Software, Pharmaceuticals, Infrastructure and Power amp; Energy of India with respect to their spending on CSR (Corporate Social Responsibility) activities. The paper examined the relationship between the expenditures those companies included in their Corporate Social Responsibility activities and the change in Price to Earnings ratio (P/E ratio) between the year 2014-2016. The hypothesis was that a higher CSR spend would enhance the companies' goodwill which should reflect in the discounting that they enjoy in the stock market. This is one of the first studies to examine this relationship for the companies that are listed in Indian stock exchanges. It was found that CSR has a significant impact on the shareholder's wealth in Infrastructure and Power amp; Energy sector. Regression model is used to analyze the data.

Cite this Research Publication : Y. Iyanar and Dr. Rajiv Prasad, “Impact of CSR Activities on Shareholders' Wealth in Indian Companies”, 2018 International Conference on Advances in Computing, Communications and Informatics (ICACCI). 2018.

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