Does mandatory expenditure on CSR affect firm value? Empirical evidence from Indian firms
利用印度2012-2017年企业数据，采用双重差分法研究发现，强制性CSR支出对企业价值有显著正向影响，且对信息不对称严重、机构持股低的企业影响更大。
Purpose The purpose of this study is to examine the impact of mandatory corporate social responsibility (CSR) spending on firm value in the Indian context. Design/methodology/approach Using firm-level data over the period 2012–2017, this study uses the difference-in-differences (DID) technique combined with matching to control for potential endogeneity of the decision to comply with the CSR Act since the Act in its current form is applicable as a comply-or-explain obligation. Findings The results of this study suggest that mandatory CSR spending has a positive and statistically significant impact on firm value. These results remain robust to alternative econometric techniques such as regression discontinuity design (RDD) and randomization inference test as well as to alternative empirical specifications. Furthermore, the study demonstrates that the positive effect of CSR spending on firm value is more pronounced for firms with higher information asymmetry problem and lower institutional holdings. Originality/value This study explicitly considers the “comply-or-explain” flexibility option, in terms of spending on CSR, provided to Indian firms for the initial two to three years and investigates whether spending on CSR helps firms enhance their firm value. The study also finds that the positive effect of CSR spending on firm value is more pronounced for firms with higher information asymmetry problems and lower institutional holdings.