Financial Performance: The Role of Corporate Governance and CSR ‎Across Firm Sizes and Industries in India

  • Authors

    • Ramakrishna Vuppuluri Research Scholar, Department of Commerce, Lovely Professional University, Phagwara, India
    • Abhishek Pandey Assistant Professor, Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India https://orcid.org/0000-0001-5077-8775
    https://doi.org/10.14419/9g09c067

    Received date: June 12, 2025

    Accepted date: June 12, 2025

    Published date: June 13, 2025

  • Corporate Governance; Corporate Social Responsibility; Factor Analysis; Regression Analysis; ‎Financial Performance

  • Abstract

    Present research explores the complex interplay between “Corporate Governance (CG)”, “Corporate Social Responsibility (CSR)” as well as “Corporate Financial Performance (CFP)” in ‎Indian firms with a specific focus on the moderating roles of firm size and industry type. ‎Recognizing the increasing stakeholder expectations and regulatory pressures, the research ‎investigates whether CG and CSR—individually and interactively enhance financial outcomes. ‎Drawing on agency and stakeholder theories, the study develops CG and CSR indices from the ‎annual report disclosures of 55 companies across various industries and a composite financial ‎performance index (CFPI) through factor analysis. Findings reveal that while CG alone does not ‎significantly impact CFP, CSR represents a strong positive association and partially mediates the ‎CG-CFP relationship. The analysis reveals that CSR’s impact is more pronounced in mid-sized ‎firms and select industries such as FMCG and automobile. These findings have important ‎implications for accounting practices, suggesting that CG mechanisms enhance financial ‎transparency indirectly through CSR pathways. The study contributes to emerging market literature ‎by proposing an integrated model of CG–CSR–CFP and recommending alignment with evolving ‎ESG and financial reporting standards‎.

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  • How to Cite

    Vuppuluri, R., & Pandey, A. . (2025). Financial Performance: The Role of Corporate Governance and CSR ‎Across Firm Sizes and Industries in India. International Journal of Accounting and Economics Studies, 12(2), 130-137. https://doi.org/10.14419/9g09c067