THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON FIRM PERFORMANCE THROUGH BOARD CHARACTERISTICS

Abstract

The purpose of this study was to examine the impact of corporate social responsibility (CSR) on the performance of pharmaceutical companies in Bangladesh. The elements are named board characteristics, audit committee measured in terms of ROA and leverage. This study indicates data of all listed firms of the Dhaka Stock Exchange (DSE) in Bangladesh under the category of the pharmaceutical industry (total of 27 firms) for 3 years from 2017/18 to 2019/20. The theoretical foundation of the study is based on agency and stakeholder theory. This study model also contains four variables, board size, board expertise, board independence and CEO duality. The outcomes of the study show that most pharmaceutical firms have been practicing corporate social responsibility (CSR) since 2016. Disclosure of corporate social responsibility is important for fulfilling corporate social responsibility, promoting the company's image, and creating good images of the company among shareholders. The study gives us that the corporate social responsibility (CSR) statement has a valuable impact on return on assets (ROA). This research has major implications for businesses based on investment activity and reporting of corporate social responsibility (CSR).