Publication Type:

Journal Article


International Journal of Innovative Technology and Exploring Engineering , Volume 8, Issue 8, p.3335-3340 (2019)



corporate social responsibility, CSR Expenditure, Dividend Paid, Shareholder Value, Tobin’s Q.


Corporate social responsibility (CSR) disclosures became mandatory in India, from April 2014. The Companies Act (2013) specifies the modus to determine the quantum and nature of CSR expenditure and requires that affected companies disclose these details in their audited annual reports. Extant literature generally documents a positive association between CSR and shareholder value. Our study researches this association in an Indian context using a sample of top 100 (by market capitalization) manufacturing companies. Manufacturing industry contributes to environmental pollution and social costs; hence CSR could contribute towards mitigating the societal impact of corporate activities, maintaining trust and increasing shareholder value. External value measures are used by modern investors to assess company’s current and prospective ability to maximize shareholder value. Therefore, we consider Dividend paid and Tobin’s Q as the determinants of shareholder value. We find that CSR is positively associated with dividend payout and Tobin’s Q. The results seem to reinforce prior research findings that shareholder value can be increased by CSR.

Cite this Research Publication

M. Venkata Amuktha and Dr. Rajiv Nair, “Corporate Social Responsibility and Shareholder Wealth- Evidence From Indian Manufacturing Sector”, International Journal of Innovative Technology and Exploring Engineering , vol. 8, no. 8, pp. 3335-3340, 2019.