The Impact of Corporate Social Responsibility on Financial Performance of Listed Companies on Pakistan Stock Exchange

Abstract

This is reported that Corporate Social Responsibility (CSR) play a vital role in the performance of companies. Therefore, in this study examined that how financial performance of listed companies is affected by the CSR. For this purpose selected 26 companies from cement, chemical, and oil & gas sectors of Pakistan during 2014 to 2018. These industries are important for the economic development and sustainable business practices. For this purpose used CSR as independent variable, Return on assets (ROA), and Return on Equity (ROE) are used as dependent variables and firm size and ownership concentration are used as control variables. The results shows that CSR positively and insignificantly effect the firm performance. However, CSR negatively and insignificantly effect the firm performance. Therefore, suggested that performance of firms are not affected by the CSR activities of firms selected in this study.        

Keywords : Corporate Social Responsibility (CSR), Financial Performance, Ownership Concentration and Panel Data Analysis