The role of knowledge assets and corporate social responsibility in creating firm value
The purpose of this paper is to investigate how knowledge assets and corporate social responsibility jointly influence the market value of a firm. In the contemporary knowledge-driven economy, where competitive advantage is based on intangible and intellectual capital, this paper emphasizes the stra...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2024-01-01
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| Series: | Knowledge & Performance Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19459/KPM_2023_1_Christofi.pdf |
| _version_ | 1797366230341910528 |
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| author | Kyriakos Christofi Pieris Chourides George Papageorgiou |
| author_facet | Kyriakos Christofi Pieris Chourides George Papageorgiou |
| author_sort | Kyriakos Christofi |
| collection | DOAJ |
| description | The purpose of this paper is to investigate how knowledge assets and corporate social responsibility jointly influence the market value of a firm. In the contemporary knowledge-driven economy, where competitive advantage is based on intangible and intellectual capital, this paper emphasizes the strategic significance of knowledge assets, open innovation, and sustainable development practices in creating and maximizing market value. By employing multiple regression analysis on panel data for ten financial years, the study examines the optimal composition of knowledge assets and the impact of CSR initiatives on firm value. Key findings highlight a crucial threshold leading to the peak of market value, approximately when knowledge assets account for about 36% of a firm’s total non-current assets. Further, this study demonstrates that maintaining a balance between internally developed knowledge assets and external acquisitions significantly enhances value, correlating with the cultivation of a capitalization ability. Finally, this paper shows that corporate social responsibility emerges as a substantial driver of generating firm value, suggesting that integrating these practices into corporate strategic decisions not only aligns with ethical goals but also enhances market valuation. The insights from this study offer valuable perspectives for both academic researchers and industry professionals, advocating for a well-balanced approach to corporate asset management and underscoring the strategic importance of incorporating corporate social responsibility. |
| first_indexed | 2024-03-08T17:02:20Z |
| format | Article |
| id | doaj.art-cd8aed95a78d42a6bac137dc22a36399 |
| institution | Directory Open Access Journal |
| issn | 2543-5507 2616-3829 |
| language | English |
| last_indexed | 2024-03-08T17:02:20Z |
| publishDate | 2024-01-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Knowledge & Performance Management |
| spelling | doaj.art-cd8aed95a78d42a6bac137dc22a363992024-01-04T10:30:57ZengLLC "CPC "Business Perspectives"Knowledge & Performance Management2543-55072616-38292024-01-017116317310.21511/kpm.07(1).2023.1319459The role of knowledge assets and corporate social responsibility in creating firm valueKyriakos Christofi0https://orcid.org/0000-0002-2277-5283Pieris Chourides1https://orcid.org/0000-0002-0650-1944George Papageorgiou2https://orcid.org/0000-0003-3288-6419Ph.D., Lecturer, SYSTEMA Research Centre, School of Business Administration, European University CyprusPh.D., Dean, SYSTEMA Research Centre, School of Business Administration, European University CyprusPh.D., Professor, SYSTEMA Research Centre, School of Business Administration, European University CyprusThe purpose of this paper is to investigate how knowledge assets and corporate social responsibility jointly influence the market value of a firm. In the contemporary knowledge-driven economy, where competitive advantage is based on intangible and intellectual capital, this paper emphasizes the strategic significance of knowledge assets, open innovation, and sustainable development practices in creating and maximizing market value. By employing multiple regression analysis on panel data for ten financial years, the study examines the optimal composition of knowledge assets and the impact of CSR initiatives on firm value. Key findings highlight a crucial threshold leading to the peak of market value, approximately when knowledge assets account for about 36% of a firm’s total non-current assets. Further, this study demonstrates that maintaining a balance between internally developed knowledge assets and external acquisitions significantly enhances value, correlating with the cultivation of a capitalization ability. Finally, this paper shows that corporate social responsibility emerges as a substantial driver of generating firm value, suggesting that integrating these practices into corporate strategic decisions not only aligns with ethical goals but also enhances market valuation. The insights from this study offer valuable perspectives for both academic researchers and industry professionals, advocating for a well-balanced approach to corporate asset management and underscoring the strategic importance of incorporating corporate social responsibility.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19459/KPM_2023_1_Christofi.pdfassets managementcorporate social responsibilityfirm valueknowledge managementstrategic acquisitionsstrategic management |
| spellingShingle | Kyriakos Christofi Pieris Chourides George Papageorgiou The role of knowledge assets and corporate social responsibility in creating firm value Knowledge & Performance Management assets management corporate social responsibility firm value knowledge management strategic acquisitions strategic management |
| title | The role of knowledge assets and corporate social responsibility in creating firm value |
| title_full | The role of knowledge assets and corporate social responsibility in creating firm value |
| title_fullStr | The role of knowledge assets and corporate social responsibility in creating firm value |
| title_full_unstemmed | The role of knowledge assets and corporate social responsibility in creating firm value |
| title_short | The role of knowledge assets and corporate social responsibility in creating firm value |
| title_sort | role of knowledge assets and corporate social responsibility in creating firm value |
| topic | assets management corporate social responsibility firm value knowledge management strategic acquisitions strategic management |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19459/KPM_2023_1_Christofi.pdf |
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