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An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance

Author

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  • Chin-Shien Lin

    (Department of Business Administration, National Chung Hsing University, 250 Kuo-Kuang Rd., Taichung 402, Taiwan)

  • Ruei-Yuan Chang

    (Department of Hospitality Management, Ming Dao University, 250 Kuo-Kuang Rd., Taichung 402, Taiwan)

  • Van Thac Dang

    (Department of Business Administration, National Chung Hsing University, 250 Kuo-Kuang Rd., Taichung 402, Taiwan)

Abstract

The effect of corporate social responsibility (CSR) on financial performance has important implications for enterprises, communities, and countries, and the significance of this issue cannot be ignored. Therefore, this paper proposes an integrated model to explain the influence of CSR on financial performance with intellectual capital as a mediator and industry type as a moderator. Empirical results indicate that intellectual capital mediates the relationship between CSR and financial performance, and industry type moderates the direct influence of CSR on financial performance. Such results have critical implications for both academia and practice.

Suggested Citation

  • Chin-Shien Lin & Ruei-Yuan Chang & Van Thac Dang, 2015. "An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance," Sustainability, MDPI, vol. 7(7), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:7:p:8292-8311:d:51817
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