Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context
Either corporate social responsibility (CSR) is paramount for the firms or not, is a matter of question since long. The present study analyzes this relationship in the context of moderating role of Institutional ownership (IO). Firm performance is measured through accounting and ma...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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CSRC Publishing
2020-06-01
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| Series: | Journal of Business and Social Review in Emerging Economies |
| Subjects: | |
| Online Access: | http://www.publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/1263 |
| _version_ | 1831728123467530240 |
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| author | Amna Noor Muhammad Farooq Mahwish Yamin Saleh Nawaz Khan |
| author_facet | Amna Noor Muhammad Farooq Mahwish Yamin Saleh Nawaz Khan |
| author_sort | Amna Noor |
| collection | DOAJ |
| description | Either corporate social responsibility (CSR) is paramount for the firms or not, is a matter of
question since long. The present study analyzes this relationship in the context of moderating
role of Institutional ownership (IO). Firm performance is measured through accounting and
market value measures. Leverage, firm age, firm size, and log of sales revenue used as a control
variables. Through applying panel data techniques, findings demonstrate insignificant positive
association between CSR and firm performance. It shows that stakeholder could not assign value
to firms spending as a CSR. This could be the reason that customers are not much aware about
firms CSR activities hence, firms fail to capitalize their spending as an investment. Institutional
Ownership (IO) reveals negative insignificant association with all profitability measures except
Tobin’s Q where this relationship is significant. This significant negative relationship supports
the agency theory and presence of strategic alliance hypotheses between influential institutional
owners and internal management that leads to lower firm performance. The interaction variable
of CSR and IO show positive but insignificant relationship with firm performance by all means. |
| first_indexed | 2024-12-21T06:43:56Z |
| format | Article |
| id | doaj.art-dcd928b2c3c84b3cbb93261cb9ea8421 |
| institution | Directory Open Access Journal |
| issn | 2519-089X 2519-0326 |
| language | English |
| last_indexed | 2024-12-21T06:43:56Z |
| publishDate | 2020-06-01 |
| publisher | CSRC Publishing |
| record_format | Article |
| series | Journal of Business and Social Review in Emerging Economies |
| spelling | doaj.art-dcd928b2c3c84b3cbb93261cb9ea84212022-12-21T19:12:39ZengCSRC PublishingJournal of Business and Social Review in Emerging Economies2519-089X2519-03262020-06-0162Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market ContextAmna Noor0Muhammad Farooq1Mahwish Yamin2Saleh Nawaz Khan3Assistant Professor School of Business Management and Administrative Sciences The Islamia University of Bahawalpur, Bahawalpur-PakistanPhD student in Finance, School of Business Management and Administrative Sciences The Islamia University of Bahawalpur, Bahawalpur-PakistanPhD Student in Finance, School of Business Management and Administrative Sciences The Islamia University of Bahawalpur, Bahawalpur-PakistanPhD Student in Finance, School of Business Management and Administrative Sciences The Islamia University of Bahawalpur, Bahawalpur-PakistanEither corporate social responsibility (CSR) is paramount for the firms or not, is a matter of question since long. The present study analyzes this relationship in the context of moderating role of Institutional ownership (IO). Firm performance is measured through accounting and market value measures. Leverage, firm age, firm size, and log of sales revenue used as a control variables. Through applying panel data techniques, findings demonstrate insignificant positive association between CSR and firm performance. It shows that stakeholder could not assign value to firms spending as a CSR. This could be the reason that customers are not much aware about firms CSR activities hence, firms fail to capitalize their spending as an investment. Institutional Ownership (IO) reveals negative insignificant association with all profitability measures except Tobin’s Q where this relationship is significant. This significant negative relationship supports the agency theory and presence of strategic alliance hypotheses between influential institutional owners and internal management that leads to lower firm performance. The interaction variable of CSR and IO show positive but insignificant relationship with firm performance by all means.http://www.publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/1263Corporate social responsibility, firm performance, Pakistan stock exchange, Institutional ownership |
| spellingShingle | Amna Noor Muhammad Farooq Mahwish Yamin Saleh Nawaz Khan Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context Journal of Business and Social Review in Emerging Economies Corporate social responsibility, firm performance, Pakistan stock exchange, Institutional ownership |
| title | Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context |
| title_full | Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context |
| title_fullStr | Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context |
| title_full_unstemmed | Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context |
| title_short | Corporate Social Responsibility and its Nexus with Firm Performance and Institutional Ownership: An Emerging Market Context |
| title_sort | corporate social responsibility and its nexus with firm performance and institutional ownership an emerging market context |
| topic | Corporate social responsibility, firm performance, Pakistan stock exchange, Institutional ownership |
| url | http://www.publishing.globalcsrc.org/ojs/index.php/jbsee/article/view/1263 |
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