Özet:

The current study aims at exploring the relationship of CSR practices with firm performance (FP) in the non-financial sector of the Pakistan stock exchange (PSX). For this purpose, the study uses sample data of 231 companies listed at PSX. The study uses “donation amount to sales” as a proxy variable for CSR practices and return on equity (ROE), return on assets (ROA) as the proxies of firm performance. The models are tested using a panel regression estimation technique with a fixed effect method, as suggested by Hausman test. The results show that CSR is significantly positively related to ROE. Findings indicate that investment in CSR brings positive change in a firm‟s profitability which ultimately leads to an increase in the shareholder‟s wealth.

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