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 in India and using manually collected CSR
expenditure data, the results of a quasi-natural experiment confirm that firms that comply
with the CSR mandate attract greater investment from FIIs. This positive nexus holds for both
existing and new FIIs. However, the heterogeneity of FIIs plays a significant moderating role …

This paper examines whether the heterogeneity of foreign institutional investors (FIIs)
matters when investing in socially responsible investee firms. Exploiting a mandated
corporate social responsibility (CSR) regulation in India and using manually collected CSR
expenditure data, the results of a quasi-natural experiment confirm that firms that comply
with the CSR mandate attract more investments from FIIs. However, the heterogeneity of FIIs
plays a significant moderating role, as FIIs from civil law origin countries, and those …