Date of Award


Document Type

Honors Thesis


School of Business

First Advisor

LeRoy Ruhupatty


This research seeks to determine whether mandated corporate social responsibilty (CSR) is value relevant to investors, specifically investors of Indian companies affected by the Companies Act, 2013 which requires companies meeting specific financial criteria to spend 2% of their three-year average net profits towards social initiatives. Recommended social initiatives include the development and implementation of environmentally sustainable businesss practices. Using the event study methodology, this study compares the cumulative abnormal returns (CAR) of companies recognized as CSR-active on the Bombay Stock Exccange (BSE) with those not recognized as CSR-active. Recognized CSR-active companies were determined through the use of the BSE Greenex and Carbonex indices which track firms' sustainability policies, strategies and accomplishments. This research has found that affected companies recognized as CSR-active are impacted significantly less negatively in terms of CAR than other affected companies. This finding suggests that mandating CSR is relvant to investors concerned with CSR involvement, specifically environmental sustainability.

Subject Area

India. Companies Act, 2013; Social responsibility of business; Industries--Social aspects; Corporation law--India

Creative Commons License

Creative Commons Attribution-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.