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Author(s):
Neelam Jhawar.
Page No : 6-40
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CSR IN INDIA AFTER THE COMPANIES ACT 2013: AN EMPIRICAL STUDY ON ITS RELATIONSHIP WITH CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE
Abstract
India is on the path of development and is witnessing growth when compared to its peers. However,
the benefit of the increasing economic growth is being enjoyed only by a small portion of the
country’s population. As per the latest Human Development Index rankings (2017), India ranks
130th out of 189 countries, and it is moving up on the rankings at a plodding pace, thus, emphasizing
on the developmental challenges India faces. The CSR agenda was included in the Companies Act
2013 keeping on table the developmental challenges India faces. The concept of CSR has taken a
new meaning ever since its introduction as a mandatory requirement in the Companies Act 2013.
However, since Section 135 is a soft mandate, the extent and the pace with which the companies are
complying by the mandatory requirement needs to be checked. Thus, the focus of the paper is to:
firstly, examine the extent of companies’ compliance to the mandate; secondly, investigate the
difference in the compliance by different groups of companies; thirdly explore the impact of
corporate governance practices and corporate financial characteristics on CSR, and fourthly to
analyze the impact of the CSR spending on the company’s financial performance as that would
determine their future course of action concerning their CSR spending. Data analysis has been done
using Descriptive Analysis, One-Sample t-Test, Independent Sample t-Test, and Multiple
Regression. The results indicate that the actual CSR spending is significantly less than the mandatory
requirement. Polluting companies and companies with foreign ownership have been found to spend
more than their counterparts. A significant impact of select financial characteristics and select
corporate governance practices on the actual CSR spending of the companies has been concluded.
Actual CSR spending is found to impact the financial performance of the companies significantly.
| 2 |
Author(s):
Sunaina Kanojia, Neha Sharma, Poonam Sethi, Jai Prakash Sharma.
Page No : 41-70
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CORPORATE FUNDING OF POLITICAL PARTIES IN INDIA
Abstract
The study aims to explore the pattern of corporate political donations in India from 2004-2019 and its
mode of funding. It attempts to highlight the flaws and shortcomings in their disclosure norms. The
role of Corporate Social Responsibility funds as a surrogate political funding has also been examined
.It also explores the emergence of electoral trusts as a new mode of corporate political funding in
India.It analyses the data of funds received by national political parties in India disclosed in their
contribution reports on the election commission website and on company’s website. It also explores
the disclosure pattern of select companies (companies which have contributed more than Rs. 1 crore
towards corporate political funding not through electoral trust over the years (2004-2018) .It also
studies the pattern of growth of electoral trust as a mode of corporate political funding in India. The
analysis of secondary data highlights the sorry state of effectiveness of disclosure norms and consent
taking mechanism for corporate political funding decisions. It indicates that somehow philanthropy
is not the idea or intention behind corporate funding. The study found that sectors dependent on
government policy decisions are keener to donate to political parties. It encourages the exploration of
adaption of new technology for better implementation of corporate governance and corporate political
funding framework. Evidence from the analysis of the data highlights the emergence of real estate
sector as one of the most prominent donors to political parties for 2004-2019 .The results also point
towards an inequitable allocation of funds to various parties leading to an uneven playing field. It
highlights that a stringent mechanism is needed to curb this upcoming menace of crony capitalism.
| 3 |
Author(s):
Swati Tejawat, Sudip Chakraborty, Nikhil Bhushan Dey.
Page No : 71-93
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CORPORATE GOVERNANCE DISCLOSURES PRACTISES OF SELECT LISTED COMPANIES OF CONSTRUCTION SECTOR UNDER THE COMPANIES ACT 2013
Abstract
Disclosure simply means to reveal facts and information. In the context of corporate reporting, it
refers to making information and facts available to stakeholders so as to enable them to arrive at a
decision. The Companies Act 2013 was a landmark legislation which set forth various disclosure
requirements for companies in order to enhance their corporate governance reporting and fixing
accountability to stakeholders. This paper aims at evaluating the corporate governance disclosure
practises of select construction sector companies as against the disclosure requirements of the
Companies Act 2013. The study has been done to analyze certain factors which affect the
disclosure practises of the companies. The methodology includes arriving at scores for different
disclosure criteria for a period of 5 years post-implementation of the Companies Act 2013 and
correlating them to certain factors. Intra Sector analysis amongst the selected companies was also
done using descriptive statistics and correlation. This finds the disclosure score for the selected
companies and trend over the last five years post-implementation of the Companies Act 2013.
Factors affecting the disclosure practises of select companies identified.
| 4 |
Author(s):
Shikha Menani.
Page No : 94-104
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IMPACT OF COVID 19 ON THE INDIAN STOCK MARKET
Abstract
The world that we live in today is a drastically changed one. What started in a small province of
China has brought such magnanimous change in the world economies that analysts are forced to
expect sudden recession in all the sectors because of global lockdown.Covid19 or the novel
Coronavirus started in the small province of China and spread to almost all countries of the
world in a short span of time with the mortality rate being quite high. Lack of medical facilities
and fear of the unknown further led to the deterioration in the worldwide economic condition.
The pandemic has not only crashed the stock markets but also brought a huge change in the
volatility which is an indication of panic amongst the investors. The study is an attempt to
highlight the changes that have come up in the Indian stock markets with respect to price
changes, volatility and investor confidence.
| 5 |
Author(s):
Neha Matlani.
Page No : 105-128
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WOMEN ON CORPORATE BOARDS: AN INTERNATIONAL PERSPECTIVE
Abstract
The paper aims to explore the policies and approaches implemented in various countries to foster
the advancement of women on corporate boards. Moreover, it addresses the business case and
social case for women on boards. It is evident from the comprehensive review of studies on gender
diversity and corporate governance that women’s participation in decision-making is positively
correlated with the financial performance of companies. Inclusive and gender balanced boards are
able to bring diverse perspectives to the table, understand customer preferences better, ensure
greater due diligence, and as a result make better decisions. Moreover, boards with women
members are more likely to focus on non-pecuniary performance indicators such as customer
satisfaction and corporate social responsibility and are better able to monitor board accountability
and authority, leading to improved corporate governance. Further, the paper evaluates the
effectiveness of voluntary mechanisms to bring more women on boards versus quota legislation.
Across various countries, quotas for female membership on corporate boards have been generating
interest. The quotas are designed to rectify the extreme gender imbalance on corporate boards,
which persists despite female advancements in education and workforce participation. The paper
reviews the potential drawbacks to implementing quotas, incorporating sociological and feminist
theory. Finally, it discusses the success of alternative approaches for increasing the representation
of women in the boardroom.
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Author(s):
Lata Bajpai Singh.
Page No : 129-139
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ODOP SCHEME FOR LOCAL CRAFT GOVERNANCE: ‘CHIKANKARI’ ENTREPRENEUR’S PERSPECTIVE
Abstract
State Government of Uttar Pradesh in India, launched 'One District One Product' (ODOP) scheme
to preserve, develop the medium and small scale enterprises and increase income and local
employment in 75 districts of Uttar Pradesh. The Government's agenda behind the scheme was a
more significant number of employment opportunities for the youth & strengthening the inclusive
and sustainable development of the state. The scheme aimed at encouraging domestic and
specialized products & crafts. Under the scheme, the Government made a provision of Rs. 250
Crores or 46.3 million U.S. dollars under its budget 2018-19. Among the 75 districts of the state,
the capital is Lucknow, which is known for Chikankari work under the ODOP scheme. The
presented case study is based on the scheme and entrepreneurs related to Chikankari work. The
purpose of the presented case study is to discover the ODOP scheme, the chikankari entrepreneurs'
awareness and attitude about the scheme. The case study also analyses the possible impact of the
recent development in the ODOP scheme on the local craft entrepreneurs.
In this market-driven, research-based case study, the primary data was collected from
Chikankarientrepreneurs about their awareness and attitude towards the scheme. During the study,
the respondents were approached for data collection, and for the study, a semi-structured schedule
was used. The data from 28 entrepreneurs were collected, compiled, and explained in detail for
problem identification and analysis.
During the study, the respondents were not well aware of the scheme, and they mentioned the
various challenges they faced, such as soaring prices, non-availability of skilled workforce, and
the Impact of Goods & service tax. After an explanation by researchers about the scheme, they
discussed the support they require from the ODOP scheme.
Besides contributing to literature about government policy and entrepreneurship, this case study
presents the respondents' attitude towards the scheme launched by the Government.
