Monika Dahiya’s scientific contributions

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Publications (4)


Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India
  • Article
  • Publisher preview available

July 2023

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30 Reads

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2 Citations

Asia Pacific Journal of Management

Monika Dahiya

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Shveta Singh

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Neeru Chaudhry

Driven by the dynamic corporate social responsibility (CSR) environment, which is encouraging movement from self-regulation to co-regulation, this study empirically investigates the impact of CSR on the efficiency of capital investments of firms in India, given its remarkable legislation that mandates firms surpassing a threshold to invest 2 per cent of their profits in CSR activities. The study is based on firms listed on NSE 500 from the year 2008 to 2019, and the results suggest that CSR significantly improves investment efficiency in the post-mandate regime. There exists an optimal CSR level that instigates an inverse U-shaped relationship. We also investigate the impact of CSR on the speed of adjustment of capital investments towards the target in case of deviations. High-CSR firms are found to adjust swiftly to their targets since such firms tend to deviate less and incur low adjustment costs. Only the governance dimension of CSR seems to affect the firms’ speed of adjustment in the current context. The positive association between CSR and adjustment speed is pronounced only in the post-mandate period. Also, CSR seems to affect the speed of adjustment only when firms are operating above the target.

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Corporate social responsibility and dividend policy in India

April 2023

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44 Reads

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9 Citations

Management Decision

Purpose The study investigates the relationship between corporate social responsibility (CSR) and dividend policy in the context of Indian firms, as well as how regulatory interventions in the form of mandated CSR can moderate this relationship. Design/methodology/approach A sample of the largest 500 companies listed on the National Stock Exchange from 2008 to 2019 is used in the study. The authors employ the system generalized method of moments since this estimation technique yields accurate and consistent findings in a dynamic panel data setting. Findings The authors find that CSR is positively associated with dividend payments. Increased incomes and lower financial constraints are the likely factors causing this relationship. Additional analysis suggests that the positive relationship is stronger for mature firms and for firms with higher information asymmetry. Financial reporting quality works in tandem with CSR to boost dividends. Regulatory interventions in the form of mandated CSR weaken the relationship. Finally, the speed of adjustment of dividends is relatively faster for socially responsible firms. Practical implications The positive association between CSR and dividends suggests that the interest of shareholders and other non-financial stakeholders can be reconciled. Additionally, businesses should attempt to strategically implement their CSR plans in accordance with the requirements of Section 135 of the Companies Act, 2013 to avoid any unfavourable moderating effects of the legislation. The results also show that CSR disclosures complement rather than serve as a substitute for financial disclosures. Originality/value The study is the first to evaluate the relationship between CSR and dividends in the context of India, which is a pioneer in passing legislation that mandates CSR for firms surpassing a threshold. The authors also identify financial constraints as a channel through which CSR affects dividends.



The linkage between CSR and cost of equity: an Indian perspective

July 2020

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396 Reads

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48 Citations

Sustainability Accounting Management and Policy Journal

Purpose This study aims to explore the relationship between corporate social responsibility (CSR) and the cost of equity (CoE) capital of Indian manufacturing firms. Design/methodology/approach The study is conducted on a sample of 68 manufacturing firms listed on National Stock Exchange of India Limited (NSE) 200, investigated for the period 2013 to 2018. To deal with the issue of endogeneity, the techniques of system generalized method of moments and two-stage least square have been applied. Findings The results suggest that CSR disclosure is positively linked with the CoE in the case of manufacturing firms, signalling that socially responsible firms in India bear a higher CoE. The findings indicate that investors do not treat CSR as a value-augmenting factor. Practical implications Firms should effectuate effective managerial and organizational changes to fulfil their social responsibility instead of window dressing their activities. Regulators in India must work towards more stringent enforcement of the act and make efforts to promote public awareness of CSR. Social implications The integration of CSR activities with the economic operations of the business is imperative. Originality/value To the best of researchers’ knowledge, there is a lack of studies focussing on India, which serves as an ideal setting for the study owing to the latest legislation mandating CSR expenditure. The study focusses on manufacturing firms as these firms are more susceptible to contribute to environmental pollution, exploitation of natural resources and labour concerns.

Citations (4)


... In the context of global economic integration, the intensity of market competition has reached unprecedented levels. This not only requires enterprises to have keen market insights but also tests their wisdom and courage in investment decision-making [1][2][3]. The success or failure of investment projects is directly related to the survival and development of enterprises. ...

Reference:

The Use of the BP Neural Network Model in Risk and Return Assessment of Investment Projects for Engineering Management
Unveiling the role of corporate social responsibility on the efficiency of capital investments and their speed of adjustment: Insights from India

Asia Pacific Journal of Management

... Daske (2006) posits that improved CSR encourages major investors to purchase stocks at premium prices, implying an inferior KE and higher market liquidity degree. Since, KE is an average return essential for all investors (informed and uninformed) functioning in the market, any enhancement in CSR levels may cut the risk of misalignment, and decrease the risk premium, thus reducing KE (Dahiya et al., 2023). ...

Corporate Social Responsibility and Dividend Policy in India
  • Citing Article
  • January 2023

SSRN Electronic Journal

... The indicators used as a tool in measuring social performance are transparency and objectivity, based on data reported by the company; this is seen from the various activities and policies carried out by the company and related to social factors, such as 1) workforce, 2) human rights, 3) product responsibility, and 4) community (Refinitiv ESG Method, 2022). A study by (Dahiya et al., 2023) was conducted on non-financial companies in the NSE 500 from 2008 to 2019. This study shows a positive influence between CSR and dividend policy. ...

Corporate social responsibility and dividend policy in India
  • Citing Article
  • April 2023

Management Decision

... This is due to increased pressure from society and government regulations. The environmental, social, and governance (ESG) scores measure the firms' adherence to such procedures (Dahiya & Singh, 2020;Chen et al., 2022). In fact, since the beginning of the 21 st century, countries such as Brazil, China, Denmark, Hong Kong, India, Malaysia, and South Africa have presented rules for disclosing the sustainability activities of their local firms (Brooks & Oikonomou, 2018). ...

The linkage between CSR and cost of equity: an Indian perspective
  • Citing Article
  • July 2020

Sustainability Accounting Management and Policy Journal