The Effect Of CSR Expenditure On Firm Value With Earnings Management As Moderating Variable: Evidence From Pakistani Listed Non-Financial Firms

Abstract

Corporate social responsibility (CSR) is the exercises of firms that are considered for financial benefit as well the social welfare returns. To find the key drivers that affects the relationship between corporate social responsibility (CSR) and firm value. This study investigates the effect of CSR expenditure on Firm value with earnings management as moderating variable: Evidence from Pakistani listed Non-Financial firms. Data sample selected from non-financial manufacturing sectors of the Pakistani economy for the analysis. I collected data from the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX), and annual reports of companies over the period 2013 to 2019. For analysis of data this study employee the common Effects model to investigate the association between CSR and firm value. The empirical analysis of this study highlights the following conclusions: First, Corporate social responsibility expenditure significantly positive effect Firm value. Second, the relationship between CSR expenditure and firm value is negatively moderate by Earnings management.