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

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Date: May 2022
From: Review of Managerial Science(Vol. 16, Issue 4)
Publisher: Springer
Document Type: Report; Brief article
Length: 221 words

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Abstract :

Keywords: Corporate social responsibility; Value-added intellectual capital; Financial performance; Developed economy; Developing economy 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. Author Affiliation: (1) Department of Financial Management, College of Business Administration, Bulacan State University, Malolos, Philippines (2) Department of International Business Administration, I-Shou University, Kaohsiung, Taiwan, R.O.C. (b) Article History: Registration Date: 03/17/2022 Received Date: 02/19/2020 Accepted Date: 10/07/2020 Online Date: 03/30/2022 Byline:

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Gale Document Number: GALE|A702342482