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Does Executive Compensation Impact Mandatory CSR Expenditure? Evidence from India

Author

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  • Neetu Yadav
  • Geeta Singh

Abstract

Our study examines the relation between the executives’ compensation and CSR expenditure in Indian firms. We employ OLS and Tobit regression to analyze the relation between executives’ compensation and CSR expenditure in more than 3,900 listed firms, from 2015 to 2023. We find that the variable component of the CEOs’ and CMDs’ compensation has a positive relation with the CSR expenditure made by the firm. We base our results on the argument of CSR improving the reputation of the firms in the market and, thus, motivating the managers to spend more in the activities related to CSR. JEL Codes: G38, M12, M14, M48

Suggested Citation

  • Neetu Yadav & Geeta Singh, 2025. "Does Executive Compensation Impact Mandatory CSR Expenditure? Evidence from India," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 24(4), pages 415-438, December.
    • Handle: RePEc:sae:emffin:v:24:y:2025:i:4:p:415-438
    DOI: 10.1177/09726527251343991
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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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