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Mandatory CSR regulation and R&D investments: Evidence from a quasi-natural experiment

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  • Jadiyappa, Nemiraja
  • Chauhan, Yogesh

Abstract

This study examines the impact of mandatory CSR regulation on the innovations of Indian firms using the CSR regulation implemented in 2014 as a quasi-natural experiment setting. By employing the Difference in Differences approach, we show that CSR regulation positively impacted firm innovations, proxied using R&D intensity. Moreover, the results remain robust for various specifications and sample selection procedures. This positive relationship is consistent with the resource-based view that CSR is an intangible resource that firms use to gain specialized knowledge about the stakeholders, positively affecting innovations.

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  • Jadiyappa, Nemiraja & Chauhan, Yogesh, 2023. "Mandatory CSR regulation and R&D investments: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323001952
    DOI: 10.1016/j.frl.2023.103822
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    1. Azzam, Ala'a & Alhababsah, Salem, 2023. "Does age similarity between board chair and CEO matter for R&D investments? Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).
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    3. Shih-Wei Hung, 2025. "Corporate social responsibility and knowledge capital: does corporate social responsibility promote accumulating knowledge capital?," Review of Quantitative Finance and Accounting, Springer, vol. 64(3), pages 1431-1452, April.
    4. Zhang Nian, 2024. "The Impact of Corporate Social Responsibility on Total Factor Productivity in the Solid Waste Treatment Industry: The Mediating Effect of R&D Inputs," GATR Journals jfbr225, Global Academy of Training and Research (GATR) Enterprise.

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