Compulsory Regulation of CSR and Investor Reactions: Evidence from Indian Economy

Abstract

This study contributes to the limited established empirical research on the impact and relevance of corporate social responsibility (CSR) in the capital markets of emerging economies. This paper demonstrates an event study to examine how compulsory CSR legislative in India influenced the stock prices. Using a data set of 400 listed Indian enterprises, this paper looks at four different event dates and comments on the necessity and importance of a structured legislation to control the CSR activity in an emerging economy like India.