AN ANALYTICAL STUDY ON RELATIONSHIP BETWEEN SPENDING ON CSR AND MARKET PRICE OF A SHARE OF IT SERVICES & CONSULTING COMPANIES LISTED ON NSE
Abstract
Every business carries out all of its activities within the society, hence it become moral duty of a business to pay some compensation to the society in which it operates. The activities conducted by a business for the betterment of the society is known as Corporate Social Responsibility. As per Companies Act, 2013 it become compulsory to formulate the Committee for CSR and spend some amount towards such social activities. In this study the relationship between spending on Corporate Social Responsibility (SCSR) and Market Price of a Share (MPS) of IT Services & Consulting companies of India have been examined. The findings show that SCSR and MPS have significant positive correlation in two companies while insignificant positive correlation in other three companies. The study's conclusions show that, in two of the firms that were looked at, MPS and SCSR had substantial positive associations. This implies that businesses with more CSR expenditures typically have higher share values. The association between MPS and SCSR expenditure, however, was shown to be negligible in three additional corporations, suggesting that share prices in these instances may be influenced by other causes.
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