Mandatory corporate social responsibility and foreign institutional investor preferences

This study examines whether the heterogeneity among foreign institutional investors (FIIs) matters when investing in socially responsible investee firms. Exploiting a mandated corporate social responsibility (CSR) regulation India and using manually collected CSR expenditure data, results of quasi-natural experiment confirm that firms comply with mandate attract greater investment from FIIs. positive nexus holds for both existing new However, FIIs plays significant moderating role because civil law origin countries those considered independent long-term invest more