Corporate Responsibility and Financial Performance: The Role of Intangible Resources
Strategic Management Journal 31(5), pp. 463-490, 2010
28 Pages Posted: 28 Aug 2014
Date Written: August 26, 2010
This paper examines the effects of a firm’s intangible resources in mediating the relationship between corporate responsibility and financial performance. We hypothesize that previous empirical findings of a positive relationship between social and financial performance may be spurious because the researchers failed to account for the mediating effects of intangible resources. Our results indicate that there is no direct relationship between corporate responsibility and financial performance — merely an indirect relationship that relies on the mediating effect of a firm’s intangible resources. We demonstrate our theoretical contention with the use of a database comprising 599 companies from 28 countries.
Note: Copyright 2010 John Wiley & Sons.
Keywords: Corporate Social Responsibility, Financial Performance, Intangible Resources
JEL Classification: M21
Suggested Citation: Suggested Citation