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Scholars Journal of Economics, Business and Management | Volume-2 | Issue-07
How Does Corporate Social Responsibility Affect Financial Performance Indicators?
Lakshmi Das, Dr. Amalendu Bhunia
Published: July 31, 2015 |
130
101
Pages: 755-760
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Abstract
The present study observes how corporate sector responsibility affects firm’s financial performance indicators
of sixteen Nabaratna Companies in India. Firms are nowadays increasing its association with every stakeholders plus
society so that firm’s status and product likeness are increased steadily. Nowadays, each and every stakeholder have
convinced firms to carry out extra investments in corporate social responsibility but some financial managers have
accepted on the condition that firms’ profitability might be increased yet again a few financial managers have opposed
for extra investment because firms’ profitability would be decreased. This study is based on annual data obtained from
the Annual Reports of the Nabaratna Companies for the period from 2010 to 2014. To determine the influence of
corporate sector responsibility on firm’s financial, correlation and linear regression analysis have been utlised. Empirical
results indicate that corporate sector responsibility affect firm’s financial performance indicators of the companies under
study although statistically insignificant, more than ever in case of fund’s size and firm’s size.