A new study by IIM Lucknow suggests that mandatory Corporate Social Responsibility (CSR) spending in India can negatively impact investor confidence and increase the cost of equity. Researchers analyzed data from 484 Indian companies between 2014-2020. The study posits that investors may view mandated CSR as a compliance cost rather than a strategic investment, potentially affecting firms' financial positions and their ability to raise capital. The findings were published in the Journal of Accounting in Emerging Economies.