Corporate Governance and Financial Sector Performance with Moderating Role of Corporate Social Responsibility: Empirical Evidence from Pakistan

Abstract

Due to its viability in financial sector, corporate governance has become an integral component in various
business organizational activities. This study examines relationship between corporate governance and banking
sector performance by using the corporate social responsibility as a moderating factor for a sample of 14 listed
banks over a period of 2012 – 2023. On the basis of performance, these banks are selected from Pakistan Stock
Exchange. For empirical purposes, since Hausman test remained significant hence fixed effects method is utilized
to estimate objectives of the study. The results reveal that in the presence of corporate social responsibility, the
corporate governance has significant effect on banking sector performance. It is also evident that corporate social
responsibility itself has positive and significant effect on banking sector performance.