The intellectual CVC

: the role of intellectual capital on CSR strategies and financial performance of corporate investors

Abstract

CSR strategies advance corporate knowledge structures, creating valuable knowledge called intellectual capital. As CVCs pursue strategic and financial objectives synchronously, this notion is important in creating competitive advantage. Pondering on the impact of intellectual capital on the corporate social responsibility and financial performance relationship, I hypothesize that environmentally and socially responsible corporate investors inherit higher intellectual capital and perform better financially. I further expect intellectual capital to fully or partially mediate the CSR strategies and financial performance relationship. Evidence is presented from a panel dataset with 1,570 firm-year observations of 79 listed U.S. corporate investors spanning the periods between 2003 and 2022. Results of this study support the impact of CSR on financial performance. Overall higher intellectual capital leads to better financial performance. The CSR-FP relationship of corporate investors is partially mediated through intellectual capital coefficients like structural and relational capital. This study raises attention to CVCs9 efforts in expanding and managing intellectual capital while undertaking CSR strategies and maximizing financial returns. The delicate findings reveal uncovered layers that assume great importance for researchers and managers of corporate investors. Limitations suggest further research.

Date of Award	15 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Fátima Shuwaikh (Supervisor)