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

This study investigates the relationship between multidimensional corporate social performance (CSP) and shareholder value, considering the moderating effects of country-specific factors: economic development, political system, and culture. Using a sample of Asian-Pacific emerging market companies from 2010-2020, the findings show that an aggregate CSP measure obscures valuation effects, while individual CSP dimensions reveal positive valuation effects that vary across stakeholder groups. Narrowly focused CSP dimensions (community, product responsibility, workforce) show stronger 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, but not humane orientation.

Boonlert Jitmaneeroj