A study on corporate social responsibility (CSR) spending and its relationship with share price with reference to fertilizer sectors
For the purpose of making the firms accountable and responsible towards its stakeholders, Companies Act 2013 has introduced mandatory contribution of 2% of average net profit towards Corporate Social Responsibility. In present study, the relationship between CSR spending and Share prices has been studied for five fertilizers companies in fertilizer sector. The study can help us to know that whether this compulsory move by the government is burden on the companies or not. Share prices have been taken as they reflect the wealth of the shareholders and also an impression of investor’s confidence. The study based on three variables CSR Spending, Net profit and Share prices. The result of the study, there is a insignificant relationship between CSR and Share price where as there is positive relationship between CSR and Share price in selected companies.