Abstract:
Recognition is given to Corporate Social Responsibility (CSR) and Market performance (MP) in
developed nations. Studies concerning CSR and Market Performance (CP) of firms are found to be
lacking particularly in Sri Lanka. Consequent to the stated problem, the current study aims to examine
the linkage between the variables through acknowledged methods. The study further identifies the
trend in CSR disclosure and market performance as well as the level of importance given by firms on individual CSR dimensions over the past period of five years, starting from 2018 to 2022. A sample
of thirty listed companies under CSE was utilized for the purpose of the present study. The financial
aspect of firms was evaluated using the Price Earnings Ratio (PER) and Earnings per Share (EPS).
The outcome of the study put forward that an insignificant relationship exists between CSR and
market performance of listed companies in Sri Lanka. Furthermore, evidence suggests where CSR
disclosure gives the impression of a slight growth, the MP increased significantly over the years.
Moreover, the study establishes that the highest proportion of information disclosed in annual reports
relates to CSR dimensions such as employee relations, community relation, environmental issue,
product quality and diversity.
