Impact of Corporate Social Responsibility on Financial Performance: A Case Study of Petroleum Industry of Pakistan
Keywords:Corporate Social Responsibility (SCR), Return on Assets (ROA), Return on Equity (ROE) and Profit after Tax (PTA).
The study is initiated to gauge the impact of Corporate Social Responsibility (CSR) on Return on Assets (ROA), Return on Equity (ROE) & Profit after Tax (PAT) of the petroleum industry. Six years data of eight petroleum companies listed on Pakistan Stock Exchange were selected for the study. Panel data regression (fixed versus random effect) model of longitudinal study strategy is used keeping in view the nature of our secondary data. CSR was found to be positively and significantly correlated with ROA and ROE whereas, negative and insignificant association was witnessed between CSR and Profit after tax.