Corporate Social Responsibility and Accounting Restatement: Evidence from Pakistan

Shehzad Mehmood

doi:10.7176/rjfa/11-3-03

Abstract

The study aims to analyze the relationship between corporate social responsibility and financial restatements. The study is conducted to check whether a CSR firm has to make less financial restatement. For this purpose, a sample of 150 non-financial firms are selected over the period of 2011-2018. The data are gathered from annual reports of these firms. Results of Logit regression analysis shows that CSR and financial statements are not significantly related with each other. Keywords: C orporate Social Responsibility, Financial Restatements, Logit Regression DOI: 10.7176/RJFA/11-3-03 Publication date: February 29 th 2020

Highlights

Autonomous affirmation of Corporate social responsibility (CSR) reports has turned into typical venture option of about 66% of the biggest 250 worldwide organizations with CSR reports freely guaranteed (KPMG, 2015)
As in case of Pakistan, Pakistan is a developing country due to which it still lacks in CSR practice
There are some firms in Pakistan who are trying to take lead in this matter but it is still not enough to get in line with the firms of developed countries

Summary

Introduction

Autonomous affirmation of Corporate social responsibility (CSR) reports has turned into typical venture option of about 66% of the biggest 250 worldwide organizations with CSR reports freely guaranteed (KPMG, 2015). Do capital market members just have extra trust in firms' accounted for CSR execution because of the CSR affirmation report or detailing of superior value? Past examinations on inside CSR correspondence exhibit that internal correspondence is the most used channel, which includes the noteworthiness credited to CSR correspondence for inward accomplices (Birth et al, 2009) Another perspective is the way inside CSR correspondence impacts inside accomplices as internal accomplices expect a key employment in CSR, being advocates for associations' CSR programs (Morsing, 2006; Du et al, 2007; Coombs 2012). At the point when an association's past announced monetary outcomes contain blunders, there is the need to rehash the money related explanations

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Conclusion