An analysis of impact of CSR practices on investment behaviour

Abstract

The increase in socially responsible investors increased the importance of corporate social responsibility (CSR) and made it more important, especially in the last decade. Now investors are not only considering the return in terms of monetary gain but the impact on society as well. This research shows that a connection between a company’s CSR efforts and its stock price success may be established. Furthermore, it demonstrates that investors may have negative reactions to CSR performance that is either too low or too high. Due to the importance of socially responsible investing, managers should focus on enhancing their companies’ CSR efforts. A CSR programme, according to a study assessment, has no effect on the market value of a company. It is possible, however, that investors’ purpose in making decisions about concern corporations might moderate the link of CSR in market capitalization. The research employs a descriptive design and data collection techniques such as snowball sampling to obtain information from investors. SPSS was used to do statistical analysis on 150 samples gathered from the investors.

Subject Classification:

• 03D45

Keywords:

• Corporate social responsibility
• Investors behavior
• Investors’ expectations
• Socially responsible investing