Investor Perspectives: Evaluating the Impact of CSR on Excess Returns in Financial Companies

Title

Investor Perspectives: Evaluating the Impact of CSR on Excess Returns in Financial Companies

Creator

Sachdeva S.; Ramesh L.

Description

This research aims to provide insights into Corporate social responsibility (CSR) performance and its impact on portfolio performance. The research would contribute to the broader understanding of how investors can achieve financial success and positive societal impact through the CSR performance of financial companies. This study uses 56 financial companies data from 20132014 to 20212022. Seemingly unrelated regression has been used to examine the impact of FAMA and French factors on the return of different portfolios. The findings of this research are significant for Banks and NBFCs, which shows that all the factors of the FAMA and French model are significant in showing the portfolios results. This study demonstrates that banks with better CSR performance yield higher expected returns than NBFC portfolios. This finding confirms that increased socially responsible activities yield better returns for banks. It showed that more socially responsible companies provide better financial returns than those not focusing on these issues. This suggests that when companies invest in being responsible and doing good for society, it can lead to better financial results for them and the investors. The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024.

Source

Springer Proceedings in Business and Economics, pp. 185-205.

Date

2024-01-01

Publisher

Springer Nature

Subject

CSR; FAMA and French; Net Interest Margin; Portfolio; Return; Risk

Coverage

Sachdeva S., Christ University, Bengaluru, India; Ramesh L., Christ University, Bengaluru, India

Rights

Restricted Access

Relation

ISSN: 21987246; ISBN: 978-981976241-5

Format

Online

Language

English

Type

Conference paper

Identifier

https://doi.org/10.1007/978-981-97-6242-2_10

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85209550773&doi=10.1007%2f978-981-97-6242-2_10&partnerID=40&md5=f9954660754bb204688fcf0b59063c65