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Corporate social responsibility and knowledge capital: does corporate social responsibility promote accumulating knowledge capital?

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  • Shih-Wei Hung

    (National Kaohsiung University of Science and Technology)

Abstract

This study investigated the effects of corporate social responsibility (CSR) on the accumulation of knowledge capital, investment in research and development (R&D), and financial performance. The empirical results revealed that CSR engagement can enhance the accumulation of knowledge capital and R&D investment. Nonetheless, engaging in external CSR, disclosing CSR-related information, and having third-parties authenticate CSR reports is important to avoid agency problems and greenwashing. It is also important that firms establish internal CSR-related policies and measures governing environmental protection and employee and supplier rights to ensure innovative development, the accumulation of knowledge capital, and R&D investment. The resources invested in knowledge capital, R&D, or CSR promotion can negatively impact profitability; however, these effects were shown not to dampen investors’ optimism about future competitive advantage or financial performance.

Suggested Citation

  • Shih-Wei Hung, 2025. "Corporate social responsibility and knowledge capital: does corporate social responsibility promote accumulating knowledge capital?," Review of Quantitative Finance and Accounting, Springer, vol. 64(3), pages 1431-1452, April.
    • Handle: RePEc:kap:rqfnac:v:64:y:2025:i:3:d:10.1007_s11156-024-01336-7
    DOI: 10.1007/s11156-024-01336-7
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    More about this item

    Keywords

    Corporate social responsibility; Knowledge capital; Research and development; Financial performance;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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