Abstract:
Over the past decade a new concept has evolved over the horizon
of Pakistani business arena that is CSR, corporate social
responsibility, with an aim to investigate and examine the
impact of corporate social responsibility (CSR) on financial
performance and future investment opportunities of companies
listed on the Pakistan Stock Exchange.Four variables are
utilized in this research amongst those three are used as a
proxy to gauge financial performance and future investment
opportunities of entities. Amongst these variables there are
Corporate Social Responsibility (Independent variable), Return
on Assets (dependent variable), Return on Equity (dependent
variable) and Tobin’s Q (dependent variable). Moreover,
financial performance was gauged by employing two tools Return
on Assets (ROA) and Return on Equity (ROE). Similarly future
investment opportunities was gauged by employing Tobin’s Q. In
this study, 280 observations were investigated of twenty eight
different corporations for a period of 10 years from 2006 to
2015.The data were analysed using the linear regression model.
The results of the study revealed and unveiled that corporate
social responsible behaviour of the firm has a positive and
significant impact on financial performance of a firm depicted
through the regression analysis ROA and ROE of the firm.
Likewise future investment opportunities are also significantly
and positively affected by corporate social responsible
behaviour of an entity. The present study is useful for managers
to develop future social performance policies that may lead to
better financial performance in the long-term along with
discovery of new investment avenues.
