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Impact of Corporate Social Responsibility Disclosure on Financial Performance: Case Study of Listed Pharmaceutical Firms of Pakistan

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  • Muhammad Shoukat Malik

    (Baha-ud-Din Zakariya University)

  • Lubna Kanwal

    (Baha-ud-Din Zakariya University)

Abstract

The intention of this paper is to examine the impact of corporate social responsibility disclosure on financial performance in a case study of listed Pharmaceutical firms in Pakistan. For this case study, the panel data of 10 years from 2005 to 2014 are obtained through content analysis of annual reports. Quantitative tools were used to measure variables studied in which index was developed and used scoring methodology. Further, brand equity is introduced as a mediator between CSRD and financial performance. The results of content analysis revealed that GSK Pakistan laboratories involved in greater level of disclosure as compared to other pharmaceutical firms. The average rate of disclosure of listed pharmaceutical firms is increasing annually. Among four themes, the results showed that pharmaceutical firms mostly disclose information regarding community involvement. The results of regression which were significant shows that brand equity act as mediator between the corporate social responsibility disclosure and financial performance.

Suggested Citation

  • Muhammad Shoukat Malik & Lubna Kanwal, 2018. "Impact of Corporate Social Responsibility Disclosure on Financial Performance: Case Study of Listed Pharmaceutical Firms of Pakistan," Journal of Business Ethics, Springer, vol. 150(1), pages 69-78, June.
    • Handle: RePEc:kap:jbuset:v:150:y:2018:i:1:d:10.1007_s10551-016-3134-6
    DOI: 10.1007/s10551-016-3134-6
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    References listed on IDEAS

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    9. Popkova, Elena & DeLo, Piper & Sergi, Bruno S., 2021. "Corporate Social Responsibility Amid Social Distancing During the COVID-19 Crisis: BRICS vs. OECD Countries," Research in International Business and Finance, Elsevier, vol. 55(C).
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    11. Muneer Mohamed Saeed Al Mubarak, 2020. "Five Senses for Effective and Sustainable Corporate Social Responsibility Strategy," International Journal of Economics and Financial Issues, Econjournals, vol. 10(1), pages 67-72.
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    13. Abebe Negeri Shonte & Quan Ji, 2022. "Management Commitment and Sustainable Coffee Export Performance, Evidence from Ethiopian Companies: The Mediating Role of Corporate Social Responsibility," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    14. Huynh Thi Thuy Giang & Luu Tien Dung, 2022. "The effect of internal corporate social responsibility practices on firm performance: the mediating role of employee intrapreneurial behaviour," Review of Managerial Science, Springer, vol. 16(4), pages 1035-1061, May.
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    16. Sadaf Ehsan & Mian Sajid Nazir & Mohammad Nurunnabi & Qasim Raza Khan & Samya Tahir & Ishfaq Ahmed, 2018. "A Multimethod Approach to Assess and Measure Corporate Social Responsibility Disclosure and Practices in a Developing Economy," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    17. Khan, Majid & Lockhart, James & Bathurst, Ralph, 2021. "The institutional analysis of CSR: Learnings from an emerging country," Emerging Markets Review, Elsevier, vol. 46(C).
    18. Lei Yu & Daojuan Wang & Qi Wang, 2018. "The Effect of Independent Director Reputation Incentives on Corporate Social Responsibility: Evidence from China," Sustainability, MDPI, vol. 10(9), pages 1-15, September.
    19. Ali Meftah Gerged & Eshani Beddewela & Christopher J. Cowton, 2021. "Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 185-203, January.
    20. Rahman, Mahabubur, 2023. "The virtuous circle between green product innovation and performance: The role of financial constraint and corporate brand," Journal of Business Research, Elsevier, vol. 154(C).
    21. Xie Hongming & Bilal Ahmed & Arif Hussain & Alam Rehman & Irfan Ullah & Farman Ullah Khan, 2020. "Sustainability Reporting and Firm Performance: The Demonstration of Pakistani Firms," SAGE Open, , vol. 10(3), pages 21582440209, September.

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