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The nexus between corporate social responsibility and firm value: the moderating role of life-cycle stages

Nguyen Vinh Khuong (Faculty of Accounting and Auditing, University of Economics and Law, Ho Chi Minh City, Vietnam and Vietnam National University, Ho Chi Minh City, Vietnam)
Le Huu Tuan Anh (Faculty of Accounting and Auditing, University of Economics and Law, Ho Chi Minh City, Vietnam and Vietnam National University, Ho Chi Minh City, Vietnam)

Social Responsibility Journal

ISSN: 1747-1117

Article publication date: 7 June 2022

Issue publication date: 10 April 2023

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Abstract

Purpose

This study aims to examine the relationship between corporate social responsibility (CSR) and firm value (FV) with the moderating role of the organizational life cycle (OLC).

Design/methodology/approach

To fill the missing link of the CSR–FV relationship in the life cycle of the firms, this study divided the firm life cycle into five stages and tested the impact of FV on CSR in each phase. This study uses the ordinary least squares, generalized method of moments method with the dynamic panel data model of 225 Vietnamese listed companies for the period from 2014 to 2018.

Findings

This study’s findings confirm the positive effect of CSR on FV. Besides, in most of the stages of the firm life cycle, FV positively affects CSR practices, and this effect is highest in the growth stage. In the decline phase, the relationship between FV and CSR is complex depending on the resources and ability of companies. This study’s results are trusted through many robustness tests.

Research limitations/implications

This research does not include all financial, insurance and investment firms to measure the CSR–FV relationship with OLC as moderating role. Further research might conduct in the larger sample or using data in cross countries enhance the evidence for the given relationship.

Originality/value

This research contributes empirical evidence to the scientific literature on CSR, FV and OLC, which would be tremendously helpful for policymakers and business owners to enhance company efficiency.

Keywords

Acknowledgements

Funding statement: This research is funded by University of Economics and Law, Vietnam National University Ho Chi Minh City, Vietnam.Conflict of interest disclosure: The authors declare no conflict of interest.

Citation

Khuong, N.V. and Anh, L.H.T. (2023), "The nexus between corporate social responsibility and firm value: the moderating role of life-cycle stages", Social Responsibility Journal, Vol. 19 No. 5, pp. 949-969. https://doi.org/10.1108/SRJ-09-2021-0370

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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