Institutional ownership and violations of mandatory CSR regulation

Title: Institutional ownership and violations of mandatory CSR regulation
Creator: Rahman, Md Lutfur
Relation: Economics Letters Vol. 206, no. 109967
Publisher Link: http://dx.doi.org/10.1016/j.econlet.2021.109967
Publisher: Elsevier BV
Resource Type: journal article
Date: 2021
Description: India is one of the very few national jurisdictions to introduce a regulation mandating spending on corporate social responsibility (CSR) activities. Although the directive has increased CSR spending significantly, it has experienced a widespread noncompliance. This paper examines the effect of institutional ownership on the likelihood of violations of the mandatory CSR regulation. Using a sample of over 4000 firm-year observations, we find that an increase in institutional ownership significantly increases firms' compliance with the mandatory CSR expenditure requirement. This result is robust to the alternative definitions of mandatory CSR violations, alternative model estimation approaches, addressing endogeneity and reverse causality biases and controlling for firms' group affiliation, and ownership of foreign investors and government.
Subject: institutional ownership; mandatory CSR expenditure; violations; India
Identifier: http://hdl.handle.net/1959.13/1460737
Identifier: uon:46041
Identifier: ISSN:0165-1765
Language: eng
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