Mandatory CSR spending can reduce perceived corporate benefits, leading to lower investor confidence and a higher cost of equity for Indian companies as investors may interpret the mandated expenditure as a compliance cost rather than a strategic investment, a new study by IIM Lucknow has found. Centric to the Indian market, the study investigates how mandatory Corporate Social Responsibility (CSR) spending can impact investors' perspectives, financial risk assessments and the cost at which firms can raise equity capital. The findings of this research have been published in the prestigious Journal of Accounting in Emerging Economies. According to Seshadev Sahoo, Professor, Finance and Accounting, Indian Institute of Management, Lucknow, to gain in-depth insights into CSR's financial implications in the Indian corporate sector, the research team examined the data from 2014 to 2020 of 484 Indian companies that spent on poverty alleviation initiatives under the CSR mandate of the ...Mandatory CSR spending can reduce perceived corporate benefits, leading to lower investor confidence and a higher cost of equity for Indian companies as investors may interpret the mandated expenditure as a compliance cost rather than a strategic investment, a new study by IIM Lucknow has found. Centric to the Indian market, the study investigates how mandatory Corporate Social Responsibility (CSR) spending can impact investors' perspectives, financial risk assessments and the cost at which firms can raise equity capital. The findings of this research have been published in the prestigious Journal of Accounting in Emerging Economies. According to Seshadev Sahoo, Professor, Finance and Accounting, Indian Institute of Management, Lucknow, to gain in-depth insights into CSR's financial implications in the Indian corporate sector, the research team examined the data from 2014 to 2020 of 484 Indian companies that spent on poverty alleviation initiatives under the CSR mandate of the ... Latest News [ SOBAN NEWS: International and National ]
