This study aims to assess the impact of intellectual capital (IC) on firm engagement in corporate social responsibility (CSR) activities. This study also examines the role of board gender diversity (BGD) as a moderating variable.
From 2010 to 2021, the study covers 52 nonfinancial Pakistan Stock Exchange (PSX)-listed enterprises. The sample firm’s CSR is evaluated using a multidimensional financial method, the IC is calculated using the MVAIC model and board gender diversity is the percentage of female board members. Panel data techniques such as the fixed effect model and the random effect are used; additionally, the system generalized method of moments estimator and the alternative proxy to measure CSR are used to assess the robustness of the result.
Based on the analysis, the authors conclude that intellectual capital (IC) is significantly positively associated with corporate social responsibility (CSR), and board gender diversity (BGD) enhances this positive relationship. In addition, the authors use the CSR disclosure index to assess the firm’s level of CSR engagement and evaluate the IC-CSR link, which supports the main conclusions.
The study’s findings will assist regulatory authorities, investors, financial analysts and other stakeholders in better understanding the firm’s investment in IC, its impact on CSR-related activities and the role of BGD in this relationship.
This research studies the connection between IC and CSR. In addition, the current study extended the analysis by testing the moderating role of BGD in the IC-CSR relationship for the first time, particularly in the context of an emerging economy.
