CORPORATE SOCIAL RESPONSIBILITY, SUSTAINABILITY AND FINANCIAL PERFORMANCE OF FINTECH COMPANIES OF INDIA
Main Article Content
Keywords
Abstract
Purpose The paper aims to evaluate the impact of sustainability on the financial performance of fintech companies. The independent variable of the research is the Corporate Social Responsibility expenditure of the technology company for the accounting year. The proxy to the firm’s financial performance is Return on Asset (ROA). Design/Methodology/Approach The data collected is secondary and the source is the Prowess-IQ, a database tool. The sample of the paper is the Nifty 200 companies, out of which financial technology companies are extracted. The paper applies multiple regressions to understand the association between the variable. The data analysis software used is SPSS and Excel. Findings The finding of the study shows a very strong impact of sustainability on the firm’s performance of the fintech firm. Research Implication The paper contributes to the current body of knowledge and is helpful to the researchers and academicians to evaluate the effect of CSR spending on the profitability of the firms. Originality/ Value This study explores the relationship between Corporate Social Responsibility (CSR), sustainability initiatives, and the financial performance of FinTech companies in India. It contributes to the understanding of how socially responsible practices and sustainable strategies can impact the financial success of these companies, benefiting both stakeholders and society.
Downloads
References
[1] Snider, J., Hill, R.P. and Martin, D., 2003. Corporate social responsibility in the 21st century: A view from the world's most successful firms. Journal of Business ethics, 48(2), pp.175-187. [2] Mohr, L.A., Webb, D.J. and Harris, K.E., 2001. Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer affairs, 35(1), pp.45-72. [3] Nag, T. and Bhattacharyya, A.K., 2016. Corporate social responsibility reporting in India: Exploring linkages with firm performance. Global Business Review, 17(6), pp.1427-1440. [4] Garg, A. and Gupta, P.K., 2020. Mandatory CSR expenditure and firm performance: Evidence from India. South Asian Journal of Business Studies, 9(2), pp.235-249. [5] Hasan, I., Singh, S. and Kashiramka, S., 2021. Does corporate social responsibility disclosure impact firm performance? An industry-wise analysis of Indian firms. Environment, Development and Sustainability, pp.1-41. [6] Bhattacharyya, A. and Khan, M., 2023. Financial inclusion, corporate social responsibility and firm performance–analysis of interactive relationship. Meditari Accountancy Research, 31(2), pp.417-440. [7] Bhattacharyya, A. and Rahman, M.L., 2019. Mandatory CSR expenditure and firm performance. Journal of Contemporary Accounting & Economics, 15(3), p.100163. [8] Dutta, S., Katti, S., Phani, B.V. and Zhu, P., 2022. Corporate social responsibility spending as a building block for sustainable corporate ethical identity: Lessons from Indian business groups. Managerial and Decision Economics, 43(3), pp.696-717. [9] Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of business ethics, 149, pp.411-432. [10] Garg, P., 2016. CSR and corporate performance: evidence from India. Decision, 43, pp.333-349. [11] Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of business ethics, 149, pp.411-432. [12] Mukherjee, A., Bird, R. and Duppati, G., 2018. Mandatory corporate social responsibility: The Indian experience. Journal of Contemporary Accounting & Economics, 14(3), pp.254-265. [13] Maqbool, S., 2019. Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index. Decision, 46, pp.219-231.. [14] Ikram, M., Sroufe, R., Mohsin, M., Solangi, Y.A., Shah, S.Z.A. and Shahzad, F., 2019. Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan. Journal of Global Responsibility, 11(1), pp.27-53.. [15] Yang, M., Bento, P. and Akbar, A., 2019. Does CSR influence firm performance indicators? Evidence from Chinese pharmaceutical enterprises. Sustainability, 11(20), p.5656.. [16] Iwu-Egwuonwu, D. and Chibuike, R., 2010. Does corporate social responsibility (CSR) impact on firm performance? A literature evidence. Ronald Chibuike, Does Corporate Social Responsibility (CSR) Impact on Firm Performance. [17] Chatjuthamard, P., Treepongkaruna, S., Jiraporn, P. and Jiraporn, N., 2021. Does firm‐level political risk influence corporate social responsibility (CSR)? Evidence from earnings conference calls. Financial Review, 56(4), pp.721-741.. [18] T. Naseem, F. Shahzad, G. A. Asim, I. U. Rehman, and F. Nawaz, “Corporate Social Responsibility Engagement and firm performance in Asia Pacific: The role of enterprise risk management,” Corporate Social Responsibility and Environmental Management, vol. 27, no. 2, pp. 501–513, 2019. [19] M. Arayssi and M. I. Jizi, “Does corporate governance spillover firm performance? A study of valuation of Mena Companies,” Social Responsibility Journal, vol. 15, no. 5, pp. 597–620, 2019. [20] N. Barrymore and R. Sampson, “ESG performance and Labor Productivity: Exploring whether and when ESG affects firm performance,” Academy of Management Proceedings, vol. 2021, no. 1, p. 13997, 2021. [21] R. Demiraj, S. Dsouza, and E. Demiraj, “ESG scores relationship with firm performance: Panel Data Evidence from the European tourism industry,” Pressacademia, 2023. [22] Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. London: Routledge. [23] El Akremi, A., Gond, J.‐P., Swaen, V., De Roeck, K., & Igalens, J. (2018). How do employees perceive corporate responsibility? Development and validation of a multidimensional corporate stakeholder responsibility scale. Journal of management, 44(2), 619–657. https://doi.org/ 10.1177/0149206315569311 [24] Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing performance outcomes in marketing. Journal of Marketing, 80(2), 1–20. https://doi.org/10.1509/jm.15.0287
Article Sidebar
Article Details
How to Cite
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by-nc/4.0) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Transfer of Copyright and Permission to Reproduce Parts of Published Papers.
Authors retain the copyright for their published work. No formal permission will be required to reproduce parts (tables or illustrations) of published papers, provided the source is quoted appropriately and reproduction has no commercial intent. Reproductions with commercial intent will require written permission and payment of royalties.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.