Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan

Irfan Rana; Faizan Asad

doi:doi:10.11648/j.ebm.20180401.11

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Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan

Irfan Rana, Faizan Asad

Published in European Business & Management (Volume 4, Issue 1)

Received: 24 September 2017 Accepted: 26 October 2017 Published: 5 December 2017

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Abstract

The purpose of this study was to examine the impact of Corporate Social Responsibility (CSR) on Financial Performance (FP) of pharmaceutical sector companies listed in Pakistan Stock Exchange (PSX). According to published data of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are reported in this sector. In order to achieve the purpose, data has been collected of three years from 2014 to 2016 from annual reports of the companies. In this study the spending on Education, Healthcare and Environment, Donation, and Workers Welfare Fund used as proxy for CSR measurement, while three proxies of Donation, Earning per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) as measurement of financial performance. Data has been analyzed using Panel Least Square Fixed Effect Regression. The findings s of the study revealed that there is positive impact of CSR on Financial Performance of the companies. It is evident that to boost the financial performance, the CSR phenomenon is an essential tool for growth in pharmaceutical industry of Pakistan.

Published in	European Business & Management (Volume 4, Issue 1)
DOI	10.11648/j.ebm.20180401.11
Page(s)	1-8
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Financial Performance, Corporate Social Responsibility, Pharmaceutical Sector, Fixed Effect Panel Regression

References

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APA Style

Irfan Rana, Faizan Asad. (2017). Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. European Business & Management, 4(1), 1-8. https://doi.org/10.11648/j.ebm.20180401.11

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ACS Style

Irfan Rana; Faizan Asad. Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. Eur. Bus. Manag. 2017, 4(1), 1-8. doi: 10.11648/j.ebm.20180401.11

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AMA Style

Irfan Rana, Faizan Asad. Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. Eur Bus Manag. 2017;4(1):1-8. doi: 10.11648/j.ebm.20180401.11

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@article{10.11648/j.ebm.20180401.11,
  author = {Irfan Rana and Faizan Asad},
  title = {Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan},
  journal = {European Business & Management},
  volume = {4},
  number = {1},
  pages = {1-8},
  doi = {10.11648/j.ebm.20180401.11},
  url = {https://doi.org/10.11648/j.ebm.20180401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180401.11},
  abstract = {The purpose of this study was to examine the impact of Corporate Social Responsibility (CSR) on Financial Performance (FP) of pharmaceutical sector companies listed in Pakistan Stock Exchange (PSX). According to published data of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are reported in this sector. In order to achieve the purpose, data has been collected of three years from 2014 to 2016 from annual reports of the companies. In this study the spending on Education, Healthcare and Environment, Donation, and Workers Welfare Fund used as proxy for CSR measurement, while three proxies of Donation, Earning per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) as measurement of financial performance. Data has been analyzed using Panel Least Square Fixed Effect Regression. The findings s of the study revealed that there is positive impact of CSR on Financial Performance of the companies. It is evident that to boost the financial performance, the CSR phenomenon is an essential tool for growth in pharmaceutical industry of Pakistan.},
 year = {2017}
}

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TY  - JOUR
T1  - Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan
AU  - Irfan Rana
AU  - Faizan Asad
Y1  - 2017/12/05
PY  - 2017
N1  - https://doi.org/10.11648/j.ebm.20180401.11
DO  - 10.11648/j.ebm.20180401.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 1
EP  - 8
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180401.11
AB  - The purpose of this study was to examine the impact of Corporate Social Responsibility (CSR) on Financial Performance (FP) of pharmaceutical sector companies listed in Pakistan Stock Exchange (PSX). According to published data of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are reported in this sector. In order to achieve the purpose, data has been collected of three years from 2014 to 2016 from annual reports of the companies. In this study the spending on Education, Healthcare and Environment, Donation, and Workers Welfare Fund used as proxy for CSR measurement, while three proxies of Donation, Earning per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) as measurement of financial performance. Data has been analyzed using Panel Least Square Fixed Effect Regression. The findings s of the study revealed that there is positive impact of CSR on Financial Performance of the companies. It is evident that to boost the financial performance, the CSR phenomenon is an essential tool for growth in pharmaceutical industry of Pakistan.
VL  - 4
IS  - 1
ER  -

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Author Information

Irfan Rana

School of Accounting & Finance, University of Central Punjab, Lahore, Pakistan
Faizan Asad

School of Accounting & Finance, University of Central Punjab, Lahore, Pakistan

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APA Style

Irfan Rana, Faizan Asad. (2017). Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. European Business & Management, 4(1), 1-8. https://doi.org/10.11648/j.ebm.20180401.11

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ACS Style

Irfan Rana; Faizan Asad. Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. Eur. Bus. Manag. 2017, 4(1), 1-8. doi: 10.11648/j.ebm.20180401.11

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AMA Style

Irfan Rana, Faizan Asad. Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan. Eur Bus Manag. 2017;4(1):1-8. doi: 10.11648/j.ebm.20180401.11

Copy | Download

@article{10.11648/j.ebm.20180401.11,
  author = {Irfan Rana and Faizan Asad},
  title = {Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan},
  journal = {European Business & Management},
  volume = {4},
  number = {1},
  pages = {1-8},
  doi = {10.11648/j.ebm.20180401.11},
  url = {https://doi.org/10.11648/j.ebm.20180401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20180401.11},
  abstract = {The purpose of this study was to examine the impact of Corporate Social Responsibility (CSR) on Financial Performance (FP) of pharmaceutical sector companies listed in Pakistan Stock Exchange (PSX). According to published data of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are reported in this sector. In order to achieve the purpose, data has been collected of three years from 2014 to 2016 from annual reports of the companies. In this study the spending on Education, Healthcare and Environment, Donation, and Workers Welfare Fund used as proxy for CSR measurement, while three proxies of Donation, Earning per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) as measurement of financial performance. Data has been analyzed using Panel Least Square Fixed Effect Regression. The findings s of the study revealed that there is positive impact of CSR on Financial Performance of the companies. It is evident that to boost the financial performance, the CSR phenomenon is an essential tool for growth in pharmaceutical industry of Pakistan.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Impact of Corporate Social Responsibility on Financial Performance Evidence from Pharmaceutical Sector Listed Companies of Pakistan
AU  - Irfan Rana
AU  - Faizan Asad
Y1  - 2017/12/05
PY  - 2017
N1  - https://doi.org/10.11648/j.ebm.20180401.11
DO  - 10.11648/j.ebm.20180401.11
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 1
EP  - 8
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20180401.11
AB  - The purpose of this study was to examine the impact of Corporate Social Responsibility (CSR) on Financial Performance (FP) of pharmaceutical sector companies listed in Pakistan Stock Exchange (PSX). According to published data of Pakistan Stock Exchange (PSX), a total of 9 pharmaceutical companies are reported in this sector. In order to achieve the purpose, data has been collected of three years from 2014 to 2016 from annual reports of the companies. In this study the spending on Education, Healthcare and Environment, Donation, and Workers Welfare Fund used as proxy for CSR measurement, while three proxies of Donation, Earning per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) as measurement of financial performance. Data has been analyzed using Panel Least Square Fixed Effect Regression. The findings s of the study revealed that there is positive impact of CSR on Financial Performance of the companies. It is evident that to boost the financial performance, the CSR phenomenon is an essential tool for growth in pharmaceutical industry of Pakistan.
VL  - 4
IS  - 1
ER  -

Copy | Download