The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan
At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with t...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021
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| Online Access: | http://psasir.upm.edu.my/id/eprint/95535/1/The%20moderating%20role%20of%20corporate%20social%20responsibility%20in%20the%20association%20of%20internal%20corporate%20governance%20and%20profitability%3B%20evidence%20from%20Pakistan.pdf |
| _version_ | 1825937592054448128 |
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| author | Jihai, Lu Javeed, Sohail Ahmad Latief, Rashid Tao, Jiang Tze, San Ong |
| author_facet | Jihai, Lu Javeed, Sohail Ahmad Latief, Rashid Tao, Jiang Tze, San Ong |
| author_sort | Jihai, Lu |
| collection | UPM |
| description | At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems. |
| first_indexed | 2024-03-06T11:01:51Z |
| format | Article |
| id | upm.eprints-95535 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T11:01:51Z |
| publishDate | 2021 |
| publisher | MDPI AG |
| record_format | dspace |
| spelling | upm.eprints-955352023-01-03T07:56:01Z http://psasir.upm.edu.my/id/eprint/95535/ The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan Jihai, Lu Javeed, Sohail Ahmad Latief, Rashid Tao, Jiang Tze, San Ong At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems. MDPI AG 2021-05-28 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/95535/1/The%20moderating%20role%20of%20corporate%20social%20responsibility%20in%20the%20association%20of%20internal%20corporate%20governance%20and%20profitability%3B%20evidence%20from%20Pakistan.pdf Jihai, Lu and Javeed, Sohail Ahmad and Latief, Rashid and Tao, Jiang and Tze, San Ong (2021) The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan. International Journal of Environmental Research and Public Health, 18. Jan-22. ISSN 1661-7827; ESSN: 1660-4601 https://www.mdpi.com/1660-4601/18/11/5830 10.3390/ijerph18115830 |
| spellingShingle | Jihai, Lu Javeed, Sohail Ahmad Latief, Rashid Tao, Jiang Tze, San Ong The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title | The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title_full | The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title_fullStr | The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title_full_unstemmed | The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title_short | The moderating role of corporate social responsibility in the association of internal corporate governance and profitability; evidence from Pakistan |
| title_sort | moderating role of corporate social responsibility in the association of internal corporate governance and profitability evidence from pakistan |
| url | http://psasir.upm.edu.my/id/eprint/95535/1/The%20moderating%20role%20of%20corporate%20social%20responsibility%20in%20the%20association%20of%20internal%20corporate%20governance%20and%20profitability%3B%20evidence%20from%20Pakistan.pdf |
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