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Title the Relationship between Corporate Social Responsibility, Earnings Management and Financial Performance of the Firm in Context of Pakistan

Author(s) Muhammad Israr

Abstract Title: The Relationship between Corporate Social Responsibility, Earnings Management and Financial Performance of the Firm in the Context of Pakistan The purpose of this research study is to fill the gap by conducting research to know what impacts CSR has on earning management and financial performance. The meaning of corporate social responsibility is to give anything of value other than the core product by the company which is in the favor of society, understanding the actual needs of the society, ensuring workplace safety of employees, employees’ retention and maintaining a clear relationship between the employees and management results in enhanced financial performance in term of profits, committed employees, customer loyalty and increased sale to face a competitive environment. The purpose of this research is to find out the relationship between corporate social responsibility, earning management and firm’s financial performance in term of employee’s retention, firm reputation and increased profits. The study is quantitative, data collected through questionnaire distributed among the employees and annual reports of different companies on Pakistan Stock exchange, OLS for earning management dummy of 0 and 1 were used to regress the result of dependent and independent variable of the companies performing business in Pakistan. The Financial Performance is dependent variable while Corporate Social Responsibility and Earning Management are the independent variable of the study. Analysis of the study shows that there is a positive correlation between Earning Management and corporate social responsibility and performance. This means that there is a significant relationship between CSR, EM and Performance revealing impacts that CSR and EM have on performance. The purpose of this study is to observe the relationship between Corporate Social Responsibility (CSR), Earning Management (EM) in firms registered on Pakistan Stock Exchange. The findings of the study show that CSR and EM lead to higher financial performance in Firms in PSX. Key words: Corporate Social Responsibility (CSR), Earning Management & Financial Performance.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2018-11-30

Subject Finance

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