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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITIES ON FIRM VALUE AND PROFITABILITY IN PAKISTAN

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07 Pages : 53-62

http://dx.doi.org/10.31703/gsr.2023(VIII-II).07      10.31703/gsr.2023(VIII-II).07      Published : Jun 2023

The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan

Abstract

    The research area of corporate social responsibility (CSRR) has seen rapid growth in the past decade. However, the real impact of CSRR on firm value has been inconclusive, often due to its qualitative data. Therefore, this study aims to investigate the relationship between corporate social responsibility (CSRR) and firm value. For this purpose, the data of listed firms in the Pakistan Stock Exchange 100 index were collected from 2010 to 2021. Regression Analysis was conducted on panel data to accomplish the main objective of the research. The study finds that Corporate social responsibility in the case of Pakistan is adopted by 67%, consisting of all the listed firms. The results of regression reflect an important positive association between the behaviour of CSRR and firm value. This result is also associated with other researchers, who suggest that investors pay a premium in the capital market in a socially responsible manner to achieve long-term profitability. The study also found that CSRR had a value-enhancing power to adopt charitable behaviour via legitimacy, Stakeholders, and signalling theory.

    Corporate Social Responsibility, Firm Performance, Women on Board

    (1) Muhammad Iqbal
    MS Scholar, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Faisal Sher
    Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
    (3) Muhammad Yusuf Amin
    Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Iqbal, M., Sher, F., & Amin, M. Y. (2023). The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan. Global Sociological Review, VIII(II), 53-62. https://doi.org/10.31703/gsr.2023(VIII-II).07

CHICAGO

    CHICAGO : Iqbal, Muhammad, Faisal Sher, and Muhammad Yusuf Amin. 2023. "The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan." Global Sociological Review, VIII (II): 53-62 doi: 10.31703/gsr.2023(VIII-II).07

HARVARD

    HARVARD : IQBAL, M., SHER, F. & AMIN, M. Y. 2023. The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan. Global Sociological Review, VIII, 53-62.

MHRA

    MHRA : Iqbal, Muhammad, Faisal Sher, and Muhammad Yusuf Amin. 2023. "The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan." Global Sociological Review, VIII: 53-62

MLA

    MLA : Iqbal, Muhammad, Faisal Sher, and Muhammad Yusuf Amin. "The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan." Global Sociological Review, VIII.II (2023): 53-62 Print.

OXFORD

    OXFORD : Iqbal, Muhammad, Sher, Faisal, and Amin, Muhammad Yusuf (2023), "The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan", Global Sociological Review, VIII (II), 53-62

TURABIAN

    TURABIAN : Iqbal, Muhammad, Faisal Sher, and Muhammad Yusuf Amin. "The Impact of Corporate Social Responsibilities on Firm Value and Profitability in Pakistan." Global Sociological Review VIII, no. II (2023): 53-62. https://doi.org/10.31703/gsr.2023(VIII-II).07