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The Role of Corporate Social Responsibility Spending on Firm Performance with Earnings Management as a Moderating Variable: Evidence from the Indian Market
Business Perspectives and Research, Ahead of Print.
This study seeks to examine the influence of corporate social responsibility (CSR) spending on firm performance (FP) and supplementary examine the contraction effect of CSR spending and earning management (EM) on the FP in the setting of Indian companies. The sample size employed in this study is 82 companies from S&P BSE 100 index during 2015&–2021. Further, Tobin&’s Q is used as an indicator for measuring the FP. The modified Jones model is employed as a proxy to quantify EM in the form of discretionary accruals (DACC). The methodological model for analysis followed in the work is pooled ordinary least square. The study reveals pragmatic evidence that enterprises engaged in the exercise of EM have no encouragement in CSR spending. In addition to this, the second hypothesis, based on EM, CSR, and earnings management, negatively influences FP in the Indian context. The results of this research will be of certain interest to business owners who want to gauge the efficacy of directors&’ and managers&’ sustainability choices, as well as investors and public authorities who want to evaluate the positive correlation between CSR and a company&’s performance and image, and therefore, the favorable impact on the firm&’s performance.
This study seeks to examine the influence of corporate social responsibility (CSR) spending on firm performance (FP) and supplementary examine the contraction effect of CSR spending and earning management (EM) on the FP in the setting of Indian companies. The sample size employed in this study is 82 companies from S&P BSE 100 index during 2015&–2021. Further, Tobin&’s Q is used as an indicator for measuring the FP. The modified Jones model is employed as a proxy to quantify EM in the form of discretionary accruals (DACC). The methodological model for analysis followed in the work is pooled ordinary least square. The study reveals pragmatic evidence that enterprises engaged in the exercise of EM have no encouragement in CSR spending. In addition to this, the second hypothesis, based on EM, CSR, and earnings management, negatively influences FP in the Indian context. The results of this research will be of certain interest to business owners who want to gauge the efficacy of directors&’ and managers&’ sustainability choices, as well as investors and public authorities who want to evaluate the positive correlation between CSR and a company&’s performance and image, and therefore, the favorable impact on the firm&’s performance.
Board structure and net working capital: evidence from FTSE all share index companies
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Measuring China’s GaR with the threshold quantile regression model
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Downside risk connectedness between Islamic sectors and green bond markets: implications for hedging and investment strategies
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Regional productivity in the transformation of China’s energy structure –estimation of the restricted cost function
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Impact of COVID-19 on migrant remittances in South Asia
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Do domestic and external geopolitical risks matter for food availability: implications for global food security
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Do Spanish regions converge? A time-series approach using fractional cointegration
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Impact of Transparency and Disclosure (TD) on the Market Valuation of the Firms in India: The Moderating Role of Competition
Business Perspectives and Research, Ahead of Print.
The competitive business environment is new world order, which applies to firms worldwide. Corporate transparency and disclosure (CTD) impact the market valuation of the firms. However, the impacts of CTD on the value in the competitive business environment are not explored well, which is the current study’s aim. Panel data of 76 diversified Indian firms are gathered. The sample (76 firms) is shortlisted from the BSE 100 index for 10 years (2010–2019). The static panel data are applied to the data. It is found that competition negatively (the learners’ index is an inverse proxy of competition) moderates the CTD’s impact on the valuation of the firms. This finding implies that a low level of competition in the business environment enhances the CTD’s impact on the firm’s valuation more than a high level of competition. Moreover, no other study finds a nonlinear positive association of CTD on the valuation and the moderation by competition. The study’s unique outcomes that CTD is effective for valuation only when it reaches a threshold level (found through nonlinear association) and a low level of competition can enhance CTD’s impact on the valuation is a significant contribution of the study.
The competitive business environment is new world order, which applies to firms worldwide. Corporate transparency and disclosure (CTD) impact the market valuation of the firms. However, the impacts of CTD on the value in the competitive business environment are not explored well, which is the current study’s aim. Panel data of 76 diversified Indian firms are gathered. The sample (76 firms) is shortlisted from the BSE 100 index for 10 years (2010–2019). The static panel data are applied to the data. It is found that competition negatively (the learners’ index is an inverse proxy of competition) moderates the CTD’s impact on the valuation of the firms. This finding implies that a low level of competition in the business environment enhances the CTD’s impact on the firm’s valuation more than a high level of competition. Moreover, no other study finds a nonlinear positive association of CTD on the valuation and the moderation by competition. The study’s unique outcomes that CTD is effective for valuation only when it reaches a threshold level (found through nonlinear association) and a low level of competition can enhance CTD’s impact on the valuation is a significant contribution of the study.