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Impact of Corporate Social Responsibility on Financial Performance: Evidence from Pakistan's Cement Industry

Abstract

In this research work investigated the impact of corporate social responsibility on financial performance of cement sector listed firms on Karachi Stock Exchange (Pakistan). Sample size of fifteen companies selected on the basis of availability of data of companies. For data used annual reports during time period of 2008-2014. For analysis purpose used fixed and random effect models and on the basis of Hausman test fixed model is best for analysis. From the results it is concluded that there is positive and significant relationship between corporate social responsibility and financial performance. This results support the theoretical relation between corporate social responsibility and financial performance. Hypotheses of positive and significant relationship of corporate social responsibility and financial performance has been supported. This work also support the view of all those researchers whose empirical evidence found positive and significant relationship between corporate social responsibility and financial performance.

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