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

http://dx.doi.org/10.31703/gsr.2023(VIII-II).07      10.31703/gsr.2023(VIII-II).07      Published : Jun 2
Authored by : Muhammad Iqbal , Faisal Sher , Muhammad Yusuf Amin

07 Pages : 53-62

References

  • Bargeron, L. L., Lehn, K. M., & Zutter, C. J. (2010). Sarbanes-Oxley and corporate risk- taking. Journal of Accounting and Economics, 49(1-2), 34–52. https://doi.org/10.1016/j.jacceco.2009.05.001
  • Barnea, A., & Rubin, A. (2010). Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics, 97(1), 71–86. http://www.jstor.org/stable/40929374
  • Boateng, S. L. (2019). Online relationship marketing and customer loyalty: a signalling theory perspective. International Journal of Bank Marketing, 37(1), 226–240. https://doi.org/10.1108/ijbm-01-2018-0009
  • Brown, L. W., Goll, I., Rasheed, A. A., & Crawford, W. S. (2020). Nonmarket Responses to Regulation: A Signaling Theory Approach. Group & Organization Management, 45(6), 865–891. https://doi.org/10.1177/1059601120963693
  • Carrasco, P. O., & Ferrón, V. V. (2022). Sending corporate social responsibility signals: What organizational characteristics must be met? Review of Business Management, 24(1), 92–111. https://doi.org/10.7819/rbgn.v24i1.4146
  • Choi, J.-S., Kwak, Y.-M., & Choe, C. (2010). Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35(3), 291–311. https://doi.org/10.1177/0312896210384681
  • Cui, J., Jo, H., & Na, H. (2016). Does Corporate Social Responsibility Affect Information Asymmetry? Journal of Business Ethics, 148(3), 549–572. https://doi.org/10.1007/s10551- 015-3003-8
  • Dzingai, I., & Fakoya, M. B. (2017). Effect of corporate governance structure on the financial performance of Johannesburg Stock Exchange (JSE)-listed mining firms. Sustainability, 9(6), 867. https://doi.org/10.3390/su9060867
  • atima, T., & Elbanna, S. (2023). Corporate social responsibility (CSRR) implementation: A review and a research agenda towards an integrative framework. Journal of Business Ethics, 183(1), 105-121.
  • Harmadji, D. E., Subroto, B., Saraswati, E., & Prihatiningtias, Y. W. (2018). From Theory to Practice of Signaling Theory: Sustainability Reporting Strategy Impact on Stock Price Crash Risk with Sustainability Reporting Quality as Mediating Variable. KnE Social Sciences.
  • Hermawan, S., Sari, Y. A., Biduri, S., Rahayu, D., & Rahayu, R. A. (2023). Corporate Social Responsibility, Firm Value, and Profitability: Evidence from Pharmaceutical Companies in Indonesia and Malaysia. International Journal of Professional Business Review, 8(2), e0625. https://doi.org/10.26668/businessreview/2023. v8i2.625
  • Jiang, H., Cheng, Y., Park, K., & Zhu, W. (2022). Linking CSRR communication to corporate reputation: Understanding hypocrisy, employees’ social media engagement and CSRR-related work engagement. Sustainability, 14(4), 2359. https://doi.org/10.3390/su14042359
  • Jo, H., & Harjoto, M. A. (2011). Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility. Journal of Business Ethics, 103(3), 351–383. http://www.jstor.org/stable/41476031
  • Krüger, P. (2009). Corporate social responsibility and the board of directors. Job Market Paper. Toulouse School of Economics, France.
  • Le, B. N., & Morschett, D. (2022). Employer Attractiveness of EMNEs: The Role of CSR in Overcoming Country-of-Origin Image Constraints in Developed Host Countries. Management International Review, 1– 34. https://doi.org/10.1007/s11575-022- 00498-7
  • Lehdonvirta, V., Kässi, O., Hjorth, I., Barnard, H., & Graham, M. (2018). The Global Platform Economy: A New Offshoring Institution Enabling Emerging-Economy Microproviders. Journal of Management, 45(2), 567–599. https://doi.org/10.1177/0149206318786781
  • Li, C., Zhang, Q., Zhang, Z., & Huang, Z. (2022). Will Corporate Green Production Be Affected by Peer CSRR Stars? Paper presented at the Proceedings of the Sixteenth International Conference on Management Science and Engineering Management–Volume 1.
  • Lindgreen, A., Swaen, V., & Johnston, W. J. (2008). Corporate Social Responsibility: An Empirical Investigation of U.S. Organizations. Journal of Business Ethics, 85(S2), 303–323. https://doi.org/10.1007/s10551-008-9738-8
  • Machmuddah, Z., Sari, D. W., & Utomo, S. D. (2020). Corporate Social Responsibility,
  • Profitability and Firm Value: Evidence from Indonesia. The Journal of Asian Finance, Economics, and Business, 7(9), 631–638. https://doi.org/10.13106/jafeb.2020.vol7.no9.6 31
  • McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal, 21(5), 603–609. https://doi.org/10.1002/(sici)1097- 0266(200005)21:5%3C603::aid- smj101%3E3.3.co;2-v
  • Mukhtaruddin, M., Ubaidillah, U., Dewi, K., Hakiki, A., & Nopriyanto, N. (2019). Good Corporate Governance, Corporate Social Responsibility, Firm Value, and Financial Performance as Moderating Variables. Indonesian Journal of Sustainability Accounting and Management, 3(1), 55. https://doi.org/10.28992/ijsam.v3i1.74
  • Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 24(3), 403– 441. https://doi.org/10.1177/0170840603024 003910
  • Ratanajongkol, S., Davey, H., & Low, M. (2006). Corporate social reporting in Thailand. Qualitative Research in Accounting & Management, 3(1), 67–83. https://doi.org/10.1108/11766090610659751
  • Rim, H., & Tao, W. (2022). CSRR Communication Message Effects. The Routledge Handbook of Corporate Social Responsibility Communication, 115-127.
  • Robertson, D. C. (2009). Corporate Social Responsibility and Different Stages of Economic Development: Singapore, Turkey, and Ethiopia. Journal of Business Ethics, 88(S4), 617– 633. https://doi.org/10.1007/s10551-009- 0311-x
  • axton, G. D., Gomez, L., Ngoh, Z., Lin, Y.-P., & Dietrich, S. (2017). Do CSR Messages Resonate? Examining Public Reactions to Firms’ CSR Efforts on Social Media. Journal of Business Ethics, 155(2), 359–377. https://doi.org/10.1007/s10551-017-3464-z
  • Wahidahwati, W., & Ardini, L. (2021). Corporate Governance and Environmental Performance: How They Affect Firm Value. The Journal of Asian Finance, Economics and Business, 8(2), 953– 962. https://doi.org/10.13106/jafeb.2021.vol8.no2.0 953
  • Yu, W., Zhou, J., He, M., & Si, D. (2022). Does Brand Truth-Telling Yield Customer Participation? The Interaction Effects of CSR Strategy and Transparency Signaling. Behavioral Sciences, 12(12), 514. https://doi.org/10.3390/bs12120514
  • Zhang, T., Zhang, Z., & Yang, J. (2020). When Does Corporate Social Responsibility Backfire in Acquisitions? Signal Incongruence and Acquirer Returns. Journal of Business Ethics, 175(1), 45– 58. https://doi.org/10.1007/s10551-020- 04583-5
  • Zhong, X., Chen, W., & Ren, G. (2022). The impact of corporate social irresponsibility on emerging- economy firms’ long-term performance: An explanation based on signal theory. Journal of Business Research, 144, 345–357. https://doi.org/10.1016/j.jbusres.2022.02.005

References

  • Bargeron, L. L., Lehn, K. M., & Zutter, C. J. (2010). Sarbanes-Oxley and corporate risk- taking. Journal of Accounting and Economics, 49(1-2), 34–52. https://doi.org/10.1016/j.jacceco.2009.05.001
  • Barnea, A., & Rubin, A. (2010). Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics, 97(1), 71–86. http://www.jstor.org/stable/40929374
  • Boateng, S. L. (2019). Online relationship marketing and customer loyalty: a signalling theory perspective. International Journal of Bank Marketing, 37(1), 226–240. https://doi.org/10.1108/ijbm-01-2018-0009
  • Brown, L. W., Goll, I., Rasheed, A. A., & Crawford, W. S. (2020). Nonmarket Responses to Regulation: A Signaling Theory Approach. Group & Organization Management, 45(6), 865–891. https://doi.org/10.1177/1059601120963693
  • Carrasco, P. O., & Ferrón, V. V. (2022). Sending corporate social responsibility signals: What organizational characteristics must be met? Review of Business Management, 24(1), 92–111. https://doi.org/10.7819/rbgn.v24i1.4146
  • Choi, J.-S., Kwak, Y.-M., & Choe, C. (2010). Corporate social responsibility and corporate financial performance: Evidence from Korea. Australian Journal of Management, 35(3), 291–311. https://doi.org/10.1177/0312896210384681
  • Cui, J., Jo, H., & Na, H. (2016). Does Corporate Social Responsibility Affect Information Asymmetry? Journal of Business Ethics, 148(3), 549–572. https://doi.org/10.1007/s10551- 015-3003-8
  • Dzingai, I., & Fakoya, M. B. (2017). Effect of corporate governance structure on the financial performance of Johannesburg Stock Exchange (JSE)-listed mining firms. Sustainability, 9(6), 867. https://doi.org/10.3390/su9060867
  • atima, T., & Elbanna, S. (2023). Corporate social responsibility (CSRR) implementation: A review and a research agenda towards an integrative framework. Journal of Business Ethics, 183(1), 105-121.
  • Harmadji, D. E., Subroto, B., Saraswati, E., & Prihatiningtias, Y. W. (2018). From Theory to Practice of Signaling Theory: Sustainability Reporting Strategy Impact on Stock Price Crash Risk with Sustainability Reporting Quality as Mediating Variable. KnE Social Sciences.
  • Hermawan, S., Sari, Y. A., Biduri, S., Rahayu, D., & Rahayu, R. A. (2023). Corporate Social Responsibility, Firm Value, and Profitability: Evidence from Pharmaceutical Companies in Indonesia and Malaysia. International Journal of Professional Business Review, 8(2), e0625. https://doi.org/10.26668/businessreview/2023. v8i2.625
  • Jiang, H., Cheng, Y., Park, K., & Zhu, W. (2022). Linking CSRR communication to corporate reputation: Understanding hypocrisy, employees’ social media engagement and CSRR-related work engagement. Sustainability, 14(4), 2359. https://doi.org/10.3390/su14042359
  • Jo, H., & Harjoto, M. A. (2011). Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility. Journal of Business Ethics, 103(3), 351–383. http://www.jstor.org/stable/41476031
  • Krüger, P. (2009). Corporate social responsibility and the board of directors. Job Market Paper. Toulouse School of Economics, France.
  • Le, B. N., & Morschett, D. (2022). Employer Attractiveness of EMNEs: The Role of CSR in Overcoming Country-of-Origin Image Constraints in Developed Host Countries. Management International Review, 1– 34. https://doi.org/10.1007/s11575-022- 00498-7
  • Lehdonvirta, V., Kässi, O., Hjorth, I., Barnard, H., & Graham, M. (2018). The Global Platform Economy: A New Offshoring Institution Enabling Emerging-Economy Microproviders. Journal of Management, 45(2), 567–599. https://doi.org/10.1177/0149206318786781
  • Li, C., Zhang, Q., Zhang, Z., & Huang, Z. (2022). Will Corporate Green Production Be Affected by Peer CSRR Stars? Paper presented at the Proceedings of the Sixteenth International Conference on Management Science and Engineering Management–Volume 1.
  • Lindgreen, A., Swaen, V., & Johnston, W. J. (2008). Corporate Social Responsibility: An Empirical Investigation of U.S. Organizations. Journal of Business Ethics, 85(S2), 303–323. https://doi.org/10.1007/s10551-008-9738-8
  • Machmuddah, Z., Sari, D. W., & Utomo, S. D. (2020). Corporate Social Responsibility,
  • Profitability and Firm Value: Evidence from Indonesia. The Journal of Asian Finance, Economics, and Business, 7(9), 631–638. https://doi.org/10.13106/jafeb.2020.vol7.no9.6 31
  • McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: correlation or misspecification? Strategic Management Journal, 21(5), 603–609. https://doi.org/10.1002/(sici)1097- 0266(200005)21:5%3C603::aid- smj101%3E3.3.co;2-v
  • Mukhtaruddin, M., Ubaidillah, U., Dewi, K., Hakiki, A., & Nopriyanto, N. (2019). Good Corporate Governance, Corporate Social Responsibility, Firm Value, and Financial Performance as Moderating Variables. Indonesian Journal of Sustainability Accounting and Management, 3(1), 55. https://doi.org/10.28992/ijsam.v3i1.74
  • Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, 24(3), 403– 441. https://doi.org/10.1177/0170840603024 003910
  • Ratanajongkol, S., Davey, H., & Low, M. (2006). Corporate social reporting in Thailand. Qualitative Research in Accounting & Management, 3(1), 67–83. https://doi.org/10.1108/11766090610659751
  • Rim, H., & Tao, W. (2022). CSRR Communication Message Effects. The Routledge Handbook of Corporate Social Responsibility Communication, 115-127.
  • Robertson, D. C. (2009). Corporate Social Responsibility and Different Stages of Economic Development: Singapore, Turkey, and Ethiopia. Journal of Business Ethics, 88(S4), 617– 633. https://doi.org/10.1007/s10551-009- 0311-x
  • axton, G. D., Gomez, L., Ngoh, Z., Lin, Y.-P., & Dietrich, S. (2017). Do CSR Messages Resonate? Examining Public Reactions to Firms’ CSR Efforts on Social Media. Journal of Business Ethics, 155(2), 359–377. https://doi.org/10.1007/s10551-017-3464-z
  • Wahidahwati, W., & Ardini, L. (2021). Corporate Governance and Environmental Performance: How They Affect Firm Value. The Journal of Asian Finance, Economics and Business, 8(2), 953– 962. https://doi.org/10.13106/jafeb.2021.vol8.no2.0 953
  • Yu, W., Zhou, J., He, M., & Si, D. (2022). Does Brand Truth-Telling Yield Customer Participation? The Interaction Effects of CSR Strategy and Transparency Signaling. Behavioral Sciences, 12(12), 514. https://doi.org/10.3390/bs12120514
  • Zhang, T., Zhang, Z., & Yang, J. (2020). When Does Corporate Social Responsibility Backfire in Acquisitions? Signal Incongruence and Acquirer Returns. Journal of Business Ethics, 175(1), 45– 58. https://doi.org/10.1007/s10551-020- 04583-5
  • Zhong, X., Chen, W., & Ren, G. (2022). The impact of corporate social irresponsibility on emerging- economy firms’ long-term performance: An explanation based on signal theory. Journal of Business Research, 144, 345–357. https://doi.org/10.1016/j.jbusres.2022.02.005

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