Corporate social responsibility, intellectual capital and financial performance: evidence from developed and developing Asian economies

Eugene Burgos Mutuc () and Sladjana Cabrilo ()
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Eugene Burgos Mutuc: Bulacan State University
Sladjana Cabrilo: I-Shou University

Review of Managerial Science, 2022, vol. 16, issue 4, No 11, 1227-1267

Abstract: Abstract Corporate social responsibility (CSR) and knowledge-based resources, i.e. intellectual capital (IC), improve financial performance. We combine these to examine how IC moderates the influence of CSR on financial performance. We analyzed 4722 firm-year observations of 787 listed firms, from 2012 to 2017, for five developed (Hong Kong, Japan, Singapore, South Korea, and Taiwan) and six developing (China, India, Indonesia, Malaysia, Philippines, and Thailand) economies. Empirically, for the whole sample, CSR has a positive effect, amplified by IC, on financial performance. The individual CSR dimensions—environmental (ENV), social (SOC) and governance (GOV)—are, however, insignificant. For the developed economies, CSR is negatively related to financial performance, with no IC moderation effect. Furthermore, SOC and GOV enhance financial performance; IC positively moderates only for GOV. For the developing economies, in contrast, CSR enhances firm performance, amplified by IC. And all three CSR dimensions have positive influence on financial performance; IC enhances only the effect of ENV. Hence, only certain CSR-IC dimensions in certain contexts improve financial performance.

Keywords: Corporate social responsibility; Value-added intellectual capital; Financial performance; Developed economy; Developing economy (search for similar items in EconPapers)
JEL-codes: L25 M14 M41 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11846-022-00542-8

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