Summary of Master Degree Thesis

Impact of Corporate Social Responsibility Disclosure on Firm Performance: The Role of

Environmental and Internal Social Disclosure.

The objective of this study is to test the relationship of corporate social responsibility
(CSR) disclosure with firm performance in Pakistan. Furthermore, to test the relationship between
internal social responsibility disclosure, environmental disclosure with firm performance in
Pakistan. For this purpose, I develop an index of environmental and internal social disclosure.
Moreover, this study determines the relationship between environmental disclosure and sensitivity
of the firm. Data collected from annual reports or any other reports issued by top 69 non-financial
and most market capitalized firms listed on Pakistan Stock Exchange from 2009-2015. OLS
regression model use in this study for analysis. All my hypotheses prove accurate.

CSR disclosure has a positive significant relationship with overall performance. CSR has
more association with long-term performance as compare to short-term performance. This result
also proves legitimacy theory that if a firm works according to norms and culture of the society
and use annual report as a legitimacy tool. Internal social disclosure has positive and significant
association with the firm performance. This result proves that agency theory exist in non-financial
firms and disclosure use as a tool to remove the agency problems. Environmental disclosure creates
positive and significant relationship with long-term performance as well as short-term
performance. This finding shows that extra environmental disclosure by sensitive industries
creates a negative impact on firm performance.

This study cover the gap of compulsory CSR disclosure on the basis of “CSR General
Order 2009” issued by Securities and Exchange Commission of Pakistan (SECP). Before this
study, any study did not focus on compulsory and internal CSR disclosure. This study provides
guideline to investors, shareholders, and other stakeholders who concern with business. This study
leads to the financial management of the firms that how they can enhance firm performance.