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

Mohsin Malik; Dr. Abdul Sattar; Dr. Nida Aman; Sabir Ali; Asma Zeeshan

doi:10.33897/fujbe.v9i2.936

Mohsin Malik MS Scholar, Management Studies, Bahria University Islamabad
Dr. Abdul Sattar Professor Management Studies, Bahria University Islamabad
Dr. Nida Aman Senior Assistant Professor, Management Studies, Bahria University Islamabad
Sabir Ali Senior Lecturer, Management Studies, Bahria University Islamabad
Asma Zeeshan Lecturer, Management Studies, Bahria University Islamabad

DOI: https://doi.org/10.33897/fujbe.v9i2.936

Keywords: Corporate Social Responsibility, Corporate Governance, Firm Performance.

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.