[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-31644":3,"doc-seo-31644":26},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"file_id":15,"file_url":16,"file_type":17,"file_size":18,"view_count":4,"is_deleted":4,"is_public":19,"is_downloadable":19,"audit_status":19,"page_count":11,"language":20,"language_code":21,"table_of_contents":22,"faqs":23,"seo_title":13,"seo_description":14,"update_tm":24,"read_time":25},31644,687197207057,"Sage","https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0",8,"Research & Report","Mandatory CSR Expenditure Regulation and Credit Ratings Evidence","India’s Companies Act 2013 mandates that eligible firms allocate at least 2% of average net profit from the previous three fiscal years to corporate social responsibility (CSR). This study evaluates whether credit rating agencies value CSR activity under mandatory expenditure rules, focusing on long-term debt ratings in India. Using 2,759 firm-year observations (2015–2023) and Difference-in-Differences plus 2SLS to address endogeneity, results show CSR compliance improves credit ratings, particularly for firms already engaged in CSR prior to the mandate, consistent with stakeholder theory.","cbCaikox1wPjvpD5","https://ap.wps.com/l/cbCaikox1wPjvpD5","pdf",603828,1,"English","en","# Introduction\n# Research Design and Identification Strategy\n## Difference-in-Differences\n## Two-Stage Least Squares\n# Data and Empirical Findings\n# Robustness and Related Literature","[{\"question\":\"What does India’s CSR mandatory expenditure regulation require?\",\"answer\":\"Firms meeting specified financial criteria must spend at least 2% of average net profit from the past three fiscal years on CSR initiatives under Section 135 of the Companies Act, 2013.\"},{\"question\":\"How do the authors test whether mandatory CSR compliance affects credit ratings?\",\"answer\":\"They use a Difference-in-Differences setup comparing treatment firms affected by the regulation with control firms not affected, and then apply a two-stage least squares approach to improve causal inference under endogeneity concerns.\"},{\"question\":\"What is the main empirical result on the relationship between CSR compliance and credit ratings?\",\"answer\":\"CSR compliance enhances firms’ credit ratings, with the positive effect appearing mainly for firms that were already participating in CSR before the regulation was introduced. The conclusions also hold when using credit ratings from another agency (CARE).\"}]",1779829325,20,{"code":4,"msg":27,"data":28},"ok",{"site_id":29,"language":21,"slug":30,"title":13,"keywords":31,"description":14,"schema_data":32,"social_meta":83,"head_meta":85,"extra_data":87,"updated_unix":24},105,"mandatory-csr-expenditure-regulation-and-credit-ratings-evidence","",{"@graph":33,"@context":82},[34,51,65],{"@type":35,"itemListElement":36},"BreadcrumbList",[37,41,45,48],{"item":38,"name":39,"@type":40,"position":19},"https://docshare.wps.com","Home","ListItem",{"item":42,"name":43,"@type":40,"position":44},"https://docshare.wps.com/document/","Document",2,{"item":46,"name":12,"@type":40,"position":47},"https://docshare.wps.com/document/research-report/",3,{"item":49,"name":13,"@type":40,"position":50},"https://docshare.wps.com/document/mandatory-csr-expenditure-regulation-and-credit-ratings-evidence/31644/",4,{"url":49,"name":13,"@type":52,"author":53,"headline":13,"publisher":55,"fileFormat":58,"description":14,"dateModified":59,"datePublished":59,"encodingFormat":58,"isAccessibleForFree":60,"interactionStatistic":61},"DigitalDocument",{"name":9,"@type":54},"Person",{"url":38,"name":56,"@type":57},"DocShare","Organization","application/pdf","2026-05-26",true,{"@type":62,"interactionType":63,"userInteractionCount":4},"InteractionCounter",{"@type":64},"ViewAction",{"@type":66,"mainEntity":67},"FAQPage",[68,74,78],{"name":69,"@type":70,"acceptedAnswer":71},"What does India’s CSR mandatory expenditure regulation require?","Question",{"text":72,"@type":73},"Firms meeting specified financial criteria must spend at least 2% of average net profit from the past three fiscal years on CSR initiatives under Section 135 of the Companies Act, 2013.","Answer",{"name":75,"@type":70,"acceptedAnswer":76},"How do the authors test whether mandatory CSR compliance affects credit ratings?",{"text":77,"@type":73},"They use a Difference-in-Differences setup comparing treatment firms affected by the regulation with control firms not affected, and then apply a two-stage least squares approach to improve causal inference under endogeneity concerns.",{"name":79,"@type":70,"acceptedAnswer":80},"What is the main empirical result on the relationship between CSR compliance and credit ratings?",{"text":81,"@type":73},"CSR compliance enhances firms’ credit ratings, with the positive effect appearing mainly for firms that were already participating in CSR before the regulation was introduced. The conclusions also hold when using credit ratings from another agency (CARE).","https://schema.org",{"og:url":49,"og:type":84,"og:title":13,"og:site_name":56,"og:description":14},"article",{"robots":86,"canonical":49},"index,follow",{"doc_id":7,"site_id":29}]