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The current study aims at exploring the relationship of CSR practices with firm performance (FP) in the
non-financial sector of the Pakistan stock exchange (PSX). For this purpose, the study uses sample data of
231 companies listed at PSX. The study uses “donation amount to sales” as a proxy variable for CSR
practices and return on equity (ROE), return on assets (ROA) as the proxies of firm performance. The
models are tested using a panel regression estimation technique with a fixed effect method, as suggested by
Hausman test. The results show that CSR is significantly positively related to ROE. Findings indicate that
investment in CSR brings positive change in a firm‟s profitability which ultimately leads to an increase in
the shareholder‟s wealth.
NAEEM KHAN, Dr. QAISAR ALI MALIK, AHSEN SAGHIR. (2020) Corporate Social Responsibility and Firm Performance: Evidence from Pakistan, International Review of Management and Business Research, Volume 9, Issue 4 .
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