Correlation Between CSR and Stock Market Performance: Analyzing 32 PSX Companies

Abstract

This study examines the impact of Corporate Social Responsibility (CSR) on the financial performance and stock prices of 32 companies listed on the Pakistan Stock Exchange (PSX). Analysisysis focuses on the correlation between CSR activities and Return on Equity (ROE), investigating how different CSR strategies, such as donations, employee welfare, and cause-related marketing, influence stock market performance. The research employs both qualitative and quantitative methods, including interviews with senior executives and analysis of company financial statements. The findings reveal varying degrees of correlation between CSR initiatives and financial performance, with some companies showing significant positive correlations, while others exhibit negative or no correlation. The study also highlights challenges in obtaining CSR-related data and discusses the implications of CSR on the long-term financial stability of firms.