Title: Impact of corporate social responsibility on firm's performance: evidence from non-financial sector of Pakistan

Authors: Burhan Rasheed; Noman Arshed; Zohair Farooq Malik; Mohyuddin Tahir Mahmood

Addresses: School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan ' School of Business and Economics, University of Management and Technology, Lahore, Pakistan ' School of Commerce and Accountancy, University of Management and Technology, Lahore, Pakistan ' School of Professional Advancement, University of Management and Technology, Lahore, Pakistan

Abstract: The objective of this study is to examine the impact of corporate social responsibility (CSR) on firm's performance (FP). It is based on conceptual aspects of CSR and considers how CSR can be measured in order to investigate the firm's performance. The paper is exploratory in nature because CSR is measured as an investment and disclosure in the Pakistani non-financial sector. The empirical results of this study provide evidence of the positive impact of CSR on FP. It is further concluded that firms investing in CSR have better financial performance. This study is a pioneer in Pakistan regarding CSR as investment and disclosure simultaneously and therefore an addition to existing literature on CSR. This paper provides different new ways to investigate CSR, by encouraging a discussion about the importance of corporate social responsibility.

Keywords: corporate social responsibility; CSR; firm's performance; FP; non-financial sector; simultaneous equation model; M40; Pakistan.

DOI: 10.1504/AAJFA.2018.091054

Afro-Asian Journal of Finance and Accounting, 2018 Vol.8 No.2, pp.105 - 122

Received: 29 Nov 2016
Accepted: 14 Jun 2017

Published online: 28 Mar 2018 *

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