1.

Judul ASSOCIATION BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND

FIRM PERFORMANCE WITH MODERATING EFFECTS OF CEO
POWER: EMPIRICAL EVIDENCE FROM DEVELOPING NATION
2. Nama peneliti, Amit Kumar Gupta, 2021
tahun
3. Keywords CEO power, fixed effect, Random effect, Hausman test
4. Latar belakang The study intends to understand the association between CSR and
penelitian FP. Moreover, an attempt shall be made to understand how CEO
Power affects this association in emerging economies such as
India. The underlying effort is to know whether the
firm/organization’s performance is genuinely affected by the CSR
initiatives and impacts the external world, which is affected
positively and negatively by the existence of these organizations.
The idea of the study shall also revolve around exploring the
business interest of an organization in implementing CSR and how
its CEO/ Highest controlling authority and the ownership structure
play a moderator role. In the past few years, sustainable business
models have become a prominent issue. Thus internal stakeholders
have been paying more attention to social activities (CSR),
including Education, Poverty Alleviation, Green Landscape,
Afforestation, etc.CSR has been first discussed (Sheldon 2004,
2003) as wilful engagement in activities that benefit society. The
history of CSR has been touched by (Carroll, 2017; Lee and Xia,
2006). Before the 1980’s CSR had proven to be a burden on the
firm, an initiative that benefitted various stakeholders but at the
expense of stockholders(Friedman, 2017, 1970). After the 1980s,
CSR was given importance in strategic firm goals after developing
stakeholder theory (Freeman, 1984). At the beginning of the
Twenty-First century, CSR became the primary concern for
businesses across the globe. CSR, in general terms, is defined as
activities that consider both social and economic benefits for the
company. The justification is proof of Corporate Social
Responsibility considerations for people & sustainability. The study
is necessary to exemplify the benefits (both tangible and
intangible) of CSR initiatives to the external society in the Indian
context, thereby creating value at the lowermost user level. The
idea of CSR started with the belief that corporations could play a
lynchpin role in tackling big problems that countries are facing
considering their strong economic and social presence in the lives
of thousands of people. This movement eventually transitioned
from a voluntary activity to In India, CSR was mandated as a part of
the Company’s Act in 2013, “CSR spends of 2% of average net
profits during the three immediately preceding financial years” for
firms that meet a certain financial threshold. Organizations “having
a net worth of rupees five billion or more, or turnover of rupees
ten billion or more or a net profit of rupees fifty million or more
during any financial year” are bound to spend a minimum of 2% of
normal net profits during the three preceding years for Corporate
Social Responsibility tasks. Five years since the law came out, there
was plenty of CSR-related discourse related to the monies that
were spent as a part of the law, and a detailed understanding of
 the CSR projects. However, the main reason for the law coming
alive, i.e., making businesses socially responsible, is rare. Thus, this
requires a deeper assessment. The CRISIL’s Corporate Social
Responsibility (Yearbook, 2017), out of 4,939 organizations on BSE
and NSE, only One thousand six hundred eighty-eight match the
criteria for obligatory spending. However, the flipside to this is that
the expenditure was less than Rs 9,669 crore of the directed spent
as 2% of the profit. Moreover, the database released by CRISIL
analyzes that only a little more than half Fifty-seven percent (57%)
of the organizations conformed with the Two Percent stipulation.
Another interesting aspect that the CRISIL reports investigate is the
association between CSR & Ownership Structure. The research
about incentive configuration mechanism states that managers
with higher ownerships are likely to support corporate social
responsibility, which helps in the shareholders’ long-term wealth.
The opposite school of thought, in this case, suggests that the
power which has been possessed by significant ownership may
enhance ‘‘management’s entrenchment.’’ Therefore, this research
tries to engage with the complex associations between CSR,
Performance, Firm, and ownership structure. This study also brings
out the non-linear as well as interactive effects of these constructs.
Overall, this study helps advance the space of CSR by
understanding the connection between ownership structure, firm
performance, and corporate Social outcomes.
5. Tinjauan Pustaka The studies, as indicated by previous research, have been
conducted at various Geographical locations naming China, France,
Pakistan, the US, etc. Different constructs have been tested,
ranging from stock exchange prices, earnings per share, Ownership
structure, CEO power, and Board independence to check the effect
on the dependent variable, Firm Performance. The sample as
observed in the study ranges from 45 to 1000 in number, for which
various indices have been referred to to conclude the results. The
literature review outcomes are grouped based on the objectives
6. Hipothesis /preposis H1: Corporate Social Responsibility positively affects Firm
Performance.
H2: Ceo Power Plays Moderator For Association Between CSR And
Firm Performance
7. Kerangka
konseptual/kerangka
pemikiran

8. Metode peneletian The study conducted is based on secondary data analysis of the
Indian companies that are making active contributions to CSR in
the Indian context. A desktop search was done to establish the top
 100 companies with CSR spending in the last five years. The
companies were then further classified as Manufacturing and
service sector companies. Out of the total population, we analyzed
a sample of thirty-seven organizations for five years starting from
2014 to 2018 across diversified industry sectors, which are active in
CSR contribution to society. The data is collected from the desktop
survey from Bloomberg terminal, the company’s annual reports,
and CSR reports published by individual organizations
9. Hasil pembahasan H1: The results of the hypotheses tests are summarized in Table 2.
Model 1 and Model 2, respectively, estimate the relationships
between CSR & ROA and CSR& EPS. Both the models confirm the
significant and positive relationships. Model 1confirms the positive
and significant association between CSR spending and ROA
(β=0.038, p<0.05) with an R-square of 84.04%. similarly, model 2
confirms the positive and significant association between CSR
spending and EPS (β=0.041, p<0.05) with and R-square of 92.08%.
hence, Hypothesis H1 is accepted for the manufacturing sector
organizations according to the results presented by the fixed effect
method.
H2: Moderating effect of CEO power between the association of
CSR spending and ROA & CSR and EPS are estimated using Model 3
and Model 4, respectively (Table 2). Model 3 has a significant
moderating effect of CEO power on the relationship between CSR
spending and ROA (β=2.0, p<0.05) with an R-square of 84.04%.
Similarly, Model 4 shows a significant moderating effect of CEO
power on the relationship between CSR spending and EPS (β=3.6,
p<0.05) with an R-Square of 92.09%. Hence hypothesis H2 is
accepted.
10. Kesimpulan dan In the light of the above-captured Table (Table 2) and its related
Saran examination of each hypothesis, it is observed that CSR positively
affects the Firm performance of the Organizations in the
Manufacturing Sector in India. Finally, for the Manufacturing
sector, the CEO power does play a moderator in the association of
CSR and Firm Performance (Both ROA and EPS). Based on the
findings in the study, we recommend the following measures to
improve the CSR spending and thus the Firm performance of the
Organizations in the Indian Scenario. CEO of the Manufacturing
sector companies should promote the CSR spending in the
organization, which in turn can improve the society on the whole
and would be economically beneficial for the organization. Second,
firms should consider the community needs where they operate
their business activities and develop a rational approach to solving
their issues. Thirdly, the Govt of India should develop strict
measures to monitor the real usage of CSR spending and its effect
on the general society and make some policies to lure the CEO of
the companies to make some healthy contributions in the field of
Corporate social responsibility