Abstract
This paper attempts to analyses the indirect impact of financial performance as a me_x0002_diating variable on a firm’s corporate social responsibility and institutional ownership in a firm. Secondary data has been collected from the top 50 manufacturing firms using purposive sampling for the period of six years (2014-2019). The results show a positive significant direct relationship between corporate social responsibility and institutional ownership; an insignificant negative relationship between the corporate social responsibility and return on assets whereas a positive significant direct relationship between the return on assets and institutional ownership. Furthermore, the indirect effect of financial performance on the relationship between corporate social responsibility and institutional ownership is neutral. Consequently, supporting the basic premise of Risk Aversion Theory which states in the long run with an increase in corporate social responsibility stock volatility decreases, and consequently institutional ownership increases in the developing country context.