Corporate Social Responsibility and Financial Performance in the Manufacturing Sector in Pakistan: Moderating Role Gender Diversity of Board
Abstract
Purpose: The study examines the impact of corporate social responsibility on financial performance with the moderating role of gender diversity in the context of the manufacturing sector in Pakistan.
Design/Methodology/Approach: The study is quantitative by using secondary data from 33 manufacturing firms listed on the Pakistan stock exchange for the time of 2015-to 2020. CSR disclosure index is calculated through the content analysis technique. Traditional and market-based proxies are used to measure financial performance. The study used the Panel data analysis technique by employing the GMM model.
Findings: Results shows that corporate social responsibility positively influences the performance of firms, which implies that engagement in CSR will improve a firm’s performance. Moreover, results reveal that gender diversity strengthens the relationship between corporate social responsibility and financial performance, which suggests that having female board members will benefit the firm to engage in CSR.
Implications/Originality/Value: The study is valuable for corporate executives for captivating the initiatives concerning CSR and gender diversity on boards.
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