The Nexus Between CSR Practices and Financial Performance: Empirical Evidence from the Manufacturing Sector in India

This research investigates the association between corporate social responsibility (CSR) and the financial performance of manufacturing firms listed in India subsequent to the enactment of The Companies Act, 201, Section 135. This paper uses the pooled OLS, random effect panel regression model, multicollinearity, and normality test for data analysis on 41 manufacturing companies top listed in nifty 100 for the duration of 2015-2023. The empirical study of this manuscript determines that CSR expenses have a positive link with ROE and ROA and adverse link with Tobin’s Q. The implications of this manuscript are for customers, investors, managers and contributors. Therefore, this study can give some insights into how much organisations spend on CSR activities and its effect on FP after adopting CSR practices. The study can also be used by policymakers to evaluate the effectiveness of present CSR regulations and to make necessary amendments to promote better CSR practices. This manuscript highlights the gap in the link between CSR and the FP of the listed manufacturing companies from the Nifty 100 index of India with recent data.