Determinants of Corporate Social Responsibility Evidence from Pakistani Listed Non-Financial Firms

Abstract

This study investigates determinants of corporate social responsibility (CSR) for Pakistani listed firms. It extends existing academic literature in two ways: (1) it obtains an increasing understanding of CSR because multiple theories related to CSR are investigated, and (2) it examined a broad range of determinants of which some have not previously been analyzed for Pakistani firms. Determinants include size, financial performance, ownership concentration, and ownership identity. Data on determinants is obtained from the annual reports of these firms published by State Bank of Pakistan as Balance Sheet Analysis reports. The relationship between determinants and CSR is empirically investigated using Generalized Least Square Regression analyses. Empirical results confirm the importance of firm characteristics in shaping CSR and show that CSR depends on firm size, financial performance, the level of ownership concentration, and ownership identity. Results of this study also show that determinants of CSR of Pakistani listed firms are not different than determinants in other countries.