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

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  • Eugene Burgos Mutuc

    (Bulacan State University)

  • Sladjana Cabrilo

    (I-Shou University)

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.

Suggested Citation

  • Eugene Burgos Mutuc & Sladjana Cabrilo, 2022. "Corporate social responsibility, intellectual capital and financial performance: evidence from developed and developing Asian economies," Review of Managerial Science, Springer, vol. 16(4), pages 1227-1267, May.
    • Handle: RePEc:spr:rvmgts:v:16:y:2022:i:4:d:10.1007_s11846-022-00542-8
    DOI: 10.1007/s11846-022-00542-8
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    2. Jabir Ali & Ishrat Naaz & Tabassum Ali, 2024. "Does corporate social responsibility improve value-added intellectual capital efficiency in food and agribusiness firms in India?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 93-106, March.

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    More about this item

    Keywords

    Corporate social responsibility; Value-added intellectual capital; Financial performance; Developed economy; Developing economy;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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