Impact of Corporate Social Responsibility on the Bank's Financial Stability and Profitability with the Moderating Role of Corporate Governance: Evidence from Pakistan
The main objective of this research manuscript is to examine the mediating role of corporate Governance on the Relationship among the Corporate Social Responsibility on Islamic and Conventional banks Profitability of Pakistan. The data collected from financial statement of the banks from the period of the 2010 to 2022. The research has used Principal Component Analysis (PCA) to construct a corporate governance index for each economy based on various corporate governance variables. The study has applied various statistical tools like descriptive statistic, correlation analysis, diagnostic tests such as heteroskedasticity, multicollinearity, stationarity, and endogeneity test, etc, panel regression and mediation analysis through feasible generalized least square (FGLS) and dynamic generalized method of moments (GMM) models to find and examine the relationships among variables. Corporate social responsibility was measured through donation of the banks while the corporate governance was measure through the boards of the firm and Profitability was measure through the ROA The finding show that corporate social responsibility has influence on the banks profitability and corporate governance Moderate this links. The findings of the study are helpful for investors, academic researchers, regulators, and business practitioners who are interested in understanding the association between corporate governance, corporate investment, corporate social responsibility, and firm efficiency.
Keywords- Corporate Governance, Corporate Social Responsibility Islamic Conventional Islamic Profitability