Impact of CSR on the Stock Returns of Indian Companies

Purpose- This study investigates the impact of Corporate Social Responsibility (CSR) on stock prices of Indian listed companies. The literature reviews show a strong contradictory of the relationship between CSR and stock prices which is still debatable. This study will tell whether there is a positive or negative or no correlation between CSR and stock price in Indian context. Methodology- The research design used in this study was an experimental cross-sectional design. This study uses regression, correlation and hypothesis testing to find the relationship between corporate social responsibility and stock price and financial performance. The stock price and some financial measures like dividend, ROE and employee benefit are also taken to measure the financial performance which indirectly affects stock price and to measure CSR the CSR expenditure is taken. Findings- This study will tell whether there is a positive or negative or no correlation between CSR and stock price in Indian context. This study is also used to suggest if the company are able to get enough returns from their CSR spending. Originality/value- The primary contribution of this study is to present a valid and robust evidence of the relationship between CSR and stock price of India listed companies. The proper reason behind CSR spending’s and its impact.