TY - JOUR
T1 - An empirical study on the relationship of corporate financial performance and human capital concerning corporate social responsibility
T2 - Applying SEM and Bayesian SEM
AU - Iwamoto, Hiroki
AU - Suzuki, Hideo
N1 - Funding Information:
This work was supported by Grant-in-Aid for Japan Society for the Promotion of Science (JSPS) Fellows [grant number JP31012984].
Publisher Copyright:
© 2019, © 2019 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - The importance of corporate social responsibility (CSR) has increased in corporate strategic management. Thus, this study focuses on three relationships: 1) the relationship between corporate financial performance (CFP) and CSR activities (CSRA), 2) the relationship between CSRA and human capital (HC), and 3) the relationship between HC and CFP. This study uses fact-based data to remove subjective influences as much as possible. Fact-based data include an ordinal scale such as the presence or absence of specific measures. In addition, since it is assumed that the three relationships are mutually affected, this study analyses them simultaneously to consider a mediating effect. In this analysis, structural equation modelling (SEM) and Bayesian SEM (BSEM) are applied to fact-based data collected from 219 listed companies in Japan. The analysis results clarify that CSRA directly impacts CFP and mediates the impact of HC on CFP. In addition, the path value of CSRA to CFP is larger in BSEM than in SEM. Thus, this study shows the merit of using a method that can handle ordinal scale indicators.
AB - The importance of corporate social responsibility (CSR) has increased in corporate strategic management. Thus, this study focuses on three relationships: 1) the relationship between corporate financial performance (CFP) and CSR activities (CSRA), 2) the relationship between CSRA and human capital (HC), and 3) the relationship between HC and CFP. This study uses fact-based data to remove subjective influences as much as possible. Fact-based data include an ordinal scale such as the presence or absence of specific measures. In addition, since it is assumed that the three relationships are mutually affected, this study analyses them simultaneously to consider a mediating effect. In this analysis, structural equation modelling (SEM) and Bayesian SEM (BSEM) are applied to fact-based data collected from 219 listed companies in Japan. The analysis results clarify that CSRA directly impacts CFP and mediates the impact of HC on CFP. In addition, the path value of CSRA to CFP is larger in BSEM than in SEM. Thus, this study shows the merit of using a method that can handle ordinal scale indicators.
KW - Bayesian structural equation modelling
KW - corporate social responsibility
KW - human resources
KW - structural equation modelling
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U2 - 10.1080/23311975.2019.1656443
DO - 10.1080/23311975.2019.1656443
M3 - Article
AN - SCOPUS:85073051123
VL - 6
JO - Cogent Business and Management
JF - Cogent Business and Management
SN - 2331-1975
IS - 1
M1 - 1656443
ER -