The Interplay between Corporate Social Responsibility on the Firm Value and the Risk-Taking through Government Support

Abstract

This study aims to investigate the impact of corporate social responsibility on the value of firm and risk-taking. It also takes into account the moderating role of government support. The stakeholder perspective theory and the resource-based theory were applied to explain the relation of the variables. All the non-financial companies listed on Pakistan stock exchange are the population of study and data were collected from the annual report of companies through a convenience sampling technique. The study used the panel data based on the results of Haussmann test’s result. The study used Stata software for data analysis. Corporate social responsibility has an impact on firm value and risk taking through the moderating effect of government support. The study finally renders theoretical and practical implications. Current research work adds the exiting literature highlighted they importance of corporate social responsibility in the value of firm and risk-taking in the Pakistani context.