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The objective of the study is to signify the impact of corporate social responsibility performance on state‐owned and non‐state‐owned enterprises' performance. The contributive concept of CSR performance has been formulated while contemplating total tax, staff expenditure, public welfare expenditure, social cost and total equity. To contemplate with deep insight, the moderating role of innovation input and output has been substantiated through empirical results. The data of 502 listed companies on Securities and Exchange Commission of Pakistan has been endorsed for years 2009–2018. Empirical underpinnings reveal that corporate social responsibility performance boosts the non‐state‐owned enterprises' performance vehemently while state‐owned enterprises have proclaimed insignificant results. Comprehensively, innovation input has decelerated the Non‐state owned Enterprises' performance while innovation output has remained insignificant. Specifically, leverage has been signified as the most deterrent vehicle for declining the Non‐State Owned Enterprises' performance. Intuitively, the theoretical contribution is manifested while deducing the implicative aspect of legitimacy theory which emphasizes on the adoption of corporate social responsibility. Implicatively, the study recommends to ameliorate the corporate structure of state‐owned enterprises comprehensively so that advantage of corporate social responsibility may be attained vigorously. Doubtlessly, empirical results are reliable and authenticated due to the execution of GMM and 2SLS instrumental regressions.

The excellence of corporate governance in companies lies in their ability to adopt the corporate social responsibility (CSR), which enhances their growth. This study examines the effect of agency cost, firm size, and CSR disclosure on the firms' growth. Specifically, the study analyzed the agency cost and firms' size as the moderators that influence the firms' performance asymmetrically. In its approach, the study compiled data of 300 Pakistani listed companies, which have a significant concern with CSR for the period 2010-2018. Using the 2SLS and GMM instrumental panel regressions, our empirical results show that the agency cost is detrimental to the firms' growth. In contrast, the firms' size boosts the firms' growth. Moreover, the growth of firms with leverage declines and the presence of independent directors improves the firms' growth.

One aspect of entrepreneurship psychology also clarifies individual characteristics. Drawing from entrepreneurship psychology, the concept of a cognitive CEO has been formulated using the DAE statistical technique. The study elucidates that cognitive CEOs not only boost SME performance but also invigorate CSR activity. Data for listed SMEs for the years 2016–2018 are analyzed through the panel regression technique. Significantly, the study demonstrates that CEO age is positively interlinked with the growth and CSR activity of the firm. Moreover, the empirical underpinning of the results also reveals that state-owned enterprises and firms with high total assets prefer cognitive CEOs, who accelerate the firm’s value and invigorate CSR activity. The number of independent directors is analyzed as a moderator and is concluded to be an intensifier for both SME growth and CSR activity. Finally, 2SLS instrumental panel regression is used to validate the veracity of the empirical results.