Impact of Corporate Social Responsibility on Dividend Payout Mediated by Accounting Conservatism

Abstract

The purpose of the study is to pinpoint the mediating effect of Accounting Conservatism (AC) in the relationship between Corporate Social Responsibility (CSR) and Dividend Payout (DP) empirically. By reviewing the past studies and literature, the hypotheses have been developed. The data has been gathered from 188 companies listed on the stock exchanges of Pakistan and India. The period of the data is 11 years (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020). The results show that the prerequisites for the mediating function of AC in the link between CSR and DP are met, and AC is partially mediating in this relationship. This relationship was studied using a generalised mixed model (GMM) to address the issue of endogeneity and unobserved heterogeneity. The results of the study are helpful for the policymakers to formulate policies regarding CSR to enhance the shareholder's wealth.