ARTICLE

IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM PROFITABILITY EVIDENCE FROM AUTOMOBILE INDUSTRIES OF PAKISTAN

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04 Pages : 36-49

http://dx.doi.org/10.31703/gmsr.2024(IX-III).04      10.31703/gmsr.2024(IX-III).04      Published : Sep 2024

Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan

Abstract

    Since, the 20th century, corporate social responsibility(CSR), an essential idea, has grown in the global economy.  Its quick development, spread in various nations.  CSR is also important in emerging nations like Pakistan. Numerous studies linked CSR to both financial and non-financial corporate profitability. The present study also checks the link, if any, between CSR aspects and profitability. CSR characteristics are independent and profitability-dependent variables. Profitability, annual turnover sales, and earnings per share were employed.  The data was processed using panel data analysis and cross-sectional data. Factor Analysis(FA),Confirmatory Factor Analysis(CFA),and Simple Linear Regression Model(SLRM)check the dependent-independent relationship. Based on the Housman test, FEM and SEM were used to analyze panel data. The results show that CSR boosts EPS and annual turnover sales. It appears that Companies with more CSR commitment have better EPS and ATS. Evidence also implies that size improves EPS and ATS and age reduces the influence of CSR.

    Corporate Social Responsibility (CSR), Profitability, Automobile Sector, Pakistan

    (1) Muhammad Hamza Haroon
    MPhil, Lecturer in Finance, Department of Management Sciences, Qurtuba University of Science and Technology, Peshawar, KP, Pakistan.
    (2) Izhar Ahmad
    MPhil, Department of Management Sciences, Qurtuba University of Science and Technology, Peshawar, KP, Pakistan.
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Cite this article

APA

    APA : Haroon, M. H., & Ahmad, I. (2024). Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan. Global Management Sciences Review, IX(III), 36-49. https://doi.org/10.31703/gmsr.2024(IX-III).04

CHICAGO

    CHICAGO : Haroon, Muhammad Hamza, and Izhar Ahmad. 2024. "Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan." Global Management Sciences Review, IX (III): 36-49 doi: 10.31703/gmsr.2024(IX-III).04

HARVARD

    HARVARD : HAROON, M. H. & AHMAD, I. 2024. Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan. Global Management Sciences Review, IX, 36-49.

MHRA

    MHRA : Haroon, Muhammad Hamza, and Izhar Ahmad. 2024. "Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan." Global Management Sciences Review, IX: 36-49

MLA

    MLA : Haroon, Muhammad Hamza, and Izhar Ahmad. "Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan." Global Management Sciences Review, IX.III (2024): 36-49 Print.

OXFORD

    OXFORD : Haroon, Muhammad Hamza and Ahmad, Izhar (2024), "Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan", Global Management Sciences Review, IX (III), 36-49

TURABIAN

    TURABIAN : Haroon, Muhammad Hamza, and Izhar Ahmad. "Impact of Corporate Social Responsibility on Firm Profitability: Evidence from Automobile Industries of Pakistan." Global Management Sciences Review IX, no. III (2024): 36-49. https://doi.org/10.31703/gmsr.2024(IX-III).04