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Praveen Bhagawan M
Praveen Bhagawan M is an assistant professor in the accounting and finance area at Institute for Financial Management and Research (IFMR), Sri City. He holds a Ph.D. in finance from IFMR, and a master's degree in commerce from Bangalore University. His research interests lie in the area of corporate finance. He has published his papers in national and international journals.
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Does mandatory CSR expenditure affect firm value? Evidence from Indian firms
Section 135 of the Companies Act, 2013 mandates all Indian firms above certain size or profit threshold to spend at least 2% of net profit earned in preceding three years on Corporate Social Responsibility (CSR) from 2014-15 onwards. The existing literature is divided on whether CSR spending helps improve firm performance. Analysing firm-level data from India for 2006-2016, this column finds that CSR spending has a significant positive impact on firm value.
