Assistant Professor, Department of Management, Banasthali Vidyapith, Vanasthali, Rajasthan, India
*Corresponding author email id: akshitaarora1989@gmail.com
Online published on 25 October, 2016.
In this paper, we test the relationship between corporate social responsibility (CSR) and firm characteristics for multinational corporation (MNC) and non-MNC Indian firms. We have tried to make a comparison between MNCs and non-MNCs regarding their CSR activities.
The empirical analysis has been conducted using different parametric and non-parametric estimation techniques like Student's t-Test, Wilcoxon Test, Mann-Whitney U-test and Ordered probit method.
The results show that CSR do not have significant relationship with firm performance measures of the sampled firms. Further, the results indicate positive relationship of CSR with size but negative relation with leverage and firm age confirming that larger, younger and less levered firms are highly active towards CSR in India than their counterparts.
The relationship between CSR and firm performance has been widely studied in the developed nations; however, empirical work on this issue is limited in case of the developing nations like India. Various estimation techniques have been used for analysis purposes for robustness of the results.
Corporate social responsibility, Multinational corporations, Firm performance, Firm size, Firm age, CSR rating, Ordered probit
