The effect of corporate social responsibility on Dividend policy

Abstract

The aim of current research paper was to investigate the relationship between CSR and dividend policy. For this purpose, a sample of 50 KSE listed companies who are operating in Pakistan for the time period 2014- 18 has been taken. The results indicated that CSR has a significant positive impact on dividend policy. It has some limitations as well. The focus of study is on those companies which are operating in Pakistan only. The basis of analysis is secondary data only. However, the study gives rise to newer research areas such as testing the same hypothesis in different financial outcomes from CSR. The results are vital to all those parties who have some stake in the corporate social responsibility activities of companies and its corresponding impact on the dividend payout policies for example investors, shareholders, public, taxpayers etc. The paper has presented an overview in which it has concluded that organization which spends less on CSR tends to pay less than those which pays higher in corporate social responsibility (CSR).