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Impact of Corporate Social Responsibility on Firm Financial Performance: Evidence from Insurance Sector of Pakistan

Author

Listed:
  • Dr. Muhammad Siddique

    (Associate Professor, Department of Commerce, University of the Punjab, Gujranwala Campus, Pakistan)

  • Dr. Muhammad Sarfraz Khan

    (Assistant Professor, Department of Commerce, University of the Punjab, Gujranwala Campus, Pakistan)

  • Dr. Kamran Ali

    (Assistant Professor, Department of Commerce, University of the Punjab, Gujranwala Campus, Pakistan)

  • Zunaira Maqsood

    (Research Scholar, Department of Commerce, University of the Punjab, Gujranwala Campus, Pakistan)

Abstract

Corporate social responsibility (CSR) has become an emerging field of research and practice and little is known about its implications for financial sector firms in developing countries like Pakistan. This study investigates impact of CSR on firm performance for insurance sector of Pakistan. Using data of twenty-eight insurance companies for eight years, this study found that CSR has a positive influence on return on assets (ROA) and earnings per share (EPS), and insignificant influence on return on equity (ROE). Further, firm size predicted ROA, while leverage predicted ROE and EPS. Overall, this study documents that CSR could be a significant predictor of financial performance of firms in financial sector of developing economies like Pakistan. Findings of this study enable the managers of financial sector firms to understudy value of CSR and adopt it to manage their performance.

Suggested Citation

  • Dr. Muhammad Siddique & Dr. Muhammad Sarfraz Khan & Dr. Kamran Ali & Zunaira Maqsood, 2023. "Impact of Corporate Social Responsibility on Firm Financial Performance: Evidence from Insurance Sector of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(3), pages 1-14.
    • Handle: RePEc:rfh:jprjor:v:9:y:2023:i:3:p:1-14
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    References listed on IDEAS

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