Abstract
This study has analyzed the effect of corporate social responsibility on the adjustment speed of capital structure towards the optimal or targeted one, by using data from the non-financial sector of Karachi Stock Exchange for years 2006 to 2014. The study has used structural equation modeling. The study has concluded that the relationship between CSR and speed of capital structure adjustment is significant through the mediating role of profitability. CSR has been found positively related to firm's profitability and profitability has been found negatively related to the speed of capital structure adjustment so the conclusion has been made for CSR and speed of capital structure adjustment relationship that higher the CSR is, lower will be the speed of capital structure adjustment.
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