This work investigates the relational behavior of corporate social responsibility (CSR) and its effect on firms' financial distress (FD). The population of the study consists of all the non-financial firms presently listed in the equity market of Pakistan. The yearly data set of 213 non-financial companies is selected from 2005 to 2017 with total observations of 2769. The analysis of the study based on OLS regression, fixed effect, and random effect models. The study also uses the GMM technique to guard against potential problems of endogeneity and heteroskedasticity that arise from the use of panel data. Results indicate that higher investment in CSR leads to reduced/lower financial distress. It suggests that investment in CSR raises the reputation and creditworthiness of firms. Key findings are robust as confirmed by alternative proxies of financial distress. Overall findings advocate that CSR helps in reducing default risk or financial distress and creates a better corporate environment that ultimately improves organizations' economic outlook.

The current study aims at exploring the relationship of CSR practices with firm performance (FP) in the non-financial sector of the Pakistan stock exchange (PSX). For this purpose, the study uses sample data of 231 companies listed at PSX. The study uses “donation amount to sales” as a proxy variable for CSR practices and return on equity (ROE), return on assets (ROA) as the proxies of firm performance. The models are tested using a panel regression estimation technique with a fixed effect method, as suggested by Hausman test. The results show that CSR is significantly positively related to ROE. Findings indicate that investment in CSR brings positive change in a firm‟s profitability which ultimately leads to an increase in the shareholder‟s wealth. Keywords: Corporate Social Responsibility, Pakistan Stock Exchange, Firm Performance, Fixed Effect Model, Non-financial Sector.

Purpose: The study evaluates the performance of alternative variance-covariance estimators as a fundamental ingredient to portfolio optimization. Methodology: The study estimates eleven covariance matrices on the data of Pakistan stock exchange's non-financial sector firms covering the period from July 2006 to June 2020. The accuracy and efficiency of covariance estimators are assessed through two evaluation parameters: root mean square error and minimum variance portfolios (risk behavior). Main findings: Empirical findings based on evaluation parameters suggest that more complex covariance estimators in the equity market of Pakistan yield no additional financial gains than the equally weighted portfolio of estimators. Application of the study: As the estimation of the variance-covariance matrix is one of the essential elements of portfolio construction, this study guides investor(s) on selecting an appropriate covariance estimator among eleven estimators endorsed by literature. Novelty/ originality of the study: Based on detailed analysis, the study documents that investor(s) of the Pakistan stock exchange cannot gain any additional benefit from more complex and tricky methods of variance-covariance estimators compared to a portfolio of estimators for the non-financial sector. Investors are advised to consider the equally weighted portfolio of estimators when formulating their investment strategy.

Purpose: The work empirically investigates the effect of corporate social responsibility (CSR) on information asymmetry (IA). Methodology: For analysis, the study uses annual data ranging from 2007 to 2017, collected from the published reports of companies registered at the Pakistani equity market comprising the non-financial sector. An unbalanced panel of 257 companies with 2383 observations is analyzed using the generalized methods of moment (GMM) technique. Main findings: In line with stakeholder's theory, results disclose a negative association between the variable of CSR and IA. It suggests that investing in CSR-related activities will reduce the asymmetry of information among managers and shareholders. Application of the study: Findings of the study uncover the benefits of CSR in relation to IA that must be considered while formulating any strategy both at the governmental and corporate level. Government should facilitate corporations that engage in CSR work while firms must include CSR in their policy-making as it can significantly reduce information asymmetry. Novelty/ originality of the study: This study provides a deep analysis in the form of behavioural association and the effect of CSR practices on information asymmetry in the context of the Pakistani non-financial sector. The study endorses the concept of CSR practices for the reduction of information asymmetry in Pakistani firms.

This paper examines the effect of management of working capital on profitability of manufacturing companies of Pakistan. The paper employed annual data ranging from 2014 to 2021 of 23 manufacturing companies of Pakistan. The dynamic generalized method of moments (GMM) technique is applied to see the aforementioned relationship. Findings of the study are that cash conversion cycle and all its elements except receivable days are positively and significantly associated with profitability (ROA) while CCC is negatively and significantly associated with profitability (ROE). Further, a more comprehensive research is recommended based on comparison between developing and developed nations in context of working capital practices.