Value relevance of multifaceted corporate social performance: how do country-specific factors matter?

This study examines the relationship between multidimensional corporate social performance (CSP) and shareholder value, considering moderating impacts of country-specific factors: economic development, the political system, and culture. Using public companies in Asian-Pacific emerging countries over 2010–2020, the findings reveal that the aggregate CSP measure obscures valuation effects, whereas individual CSP dimensions highlight positive valuation effects. The CSP valuation effect varies across dimensions aimed at different stakeholder groups. Narrowly focused CSP dimensions (community, product responsibility, and workforce) show more pronounced valuation effects than broadly focused dimensions (human rights). Importance-performance analysis suggests prioritizing resource allocation to human rights, community, product responsibility, and workforce. The positive valuation effect of CSP is amplified in countries with higher income-per-capita and lower corruption, indicative of economic development and robust political systems. Humane orientation—a cultural proxy—shows no moderating impact. Understanding moderating roles of country-specific factors has significant implications for bolstering CSP across global regions.

Boonlert Jitmaneeroj