Paper Title
Corporate Philanthropy and Corporate Financial Performance: Empirical Evidences from Non-Financial Sectors of Pakistan

The present study empirically examines the impact of corporate philanthropic – a corporate social responsibility (CSR) dimension on financial performance, being measured in terms of Tobin’s Q, return on assets (ROA) and return on equity (ROE) of non-financial sector of Pakistan. This dimension of CSR plays a vital role in building reputation of non-financial sector companies for the stakeholders, which ultimately contributes into long-term performance of firms. The unit of analysis for the present study consists of 100 companies from non-financial sector, which are listed on Karachi Stock Exchange and making CSR practices. Time span for the selected sample is from 2010 to 2014. For empirical investigation, fixed effects method has been employed. The empirical results reveal that the donations have significant impact on ROA and ROE while this effect remains insignificant for Tobin’s Q. On the whole, it concludes that CSR activities have positive impact on the performance of selected sample of firms. Moreover, the positive correlation between corporate social responsibility and financial performance indicates that donations can be considered as an imperative factor to enhance the financial performance of non-financial sector firms. Key Words- Financial Performance, Return on Asset, Return on Equity, Tobin’s Q, Corporate Philanthropic, Corporate Social Responsibility.