Corporate Social Responsibility Reporting, Intellectual Capital, and Financial Performance of Listed Firms in Ghana

Authors

  • Anthony Buawolor Tetteh Department of Banking and Finance, University of Professional Studies, Accra, Ghana
  • Sophia Awartey Department of Accounting, University of Professional Studies, Accra, Ghana
  • John Kwaku Mensah Mawutor Department of Accounting, University of Professional Studies, Accra, Ghana
  • Felix Kwame Aveh Department of Accounting, University of Professional Studies, Accra, Ghana
  • Samuel Antwi Department of Accounting, University of Professional Studies, Accra, Ghana
  • Isaac Ofoeda Department of Banking and Finance, University of Professional Studies, Accra, Ghana

DOI:

https://doi.org/10.55482/jcim.2024.33791

Keywords:

Corporate social responsibility reporting, intellectual capital, human capital efficiency, structural capital efficiency, performance

Abstract

This study examines the moderating effect of intellectual capital (IC) on the relationship between corporate social responsibility (CSR) reporting and financial performance of 36 listed firms in Ghana from 2013 to 2022. We employed the system generalized method of moment and the dynamic panel threshold regression. We used data from BankScope, the Refinitiv database, and unconsolidated financial statements. We discovered a significant negative effect of CSR reporting on financial performance. Conversely, the IC components including value-added intellectual coefficient (VAIC), human capital efficiency (HCE), and structural capital efficiency (SCE) have a positive effect on financial performance. However, capital employed efficiency (CEE) negatively impacts financial performance of listed firms in Ghana. Our study further revealed that VAIC, HCE, and SCE exhibit positive and statistically significant moderating effects on the relationship between CSR reporting and financial performance. Our analysis also reported a negative and significant effect of CEE on the relationship between CSR reporting and financial performance. We also found that CSR reporting positively affects financial performance of listed firms in Ghana when IC (VAIC, HCE, and SCE) exceeds a certain threshold. Firms must carefully consider the interplay between CSR reporting, IC, and environmental engagement to optimize their financial performance. This research contributes to the theoretical understanding by demonstrating how IC components, particularly VAIC, HCE, and SCE, positively moderate the relationship between CSR reporting and financial performance, offering fresh perspectives on the role of IC in enhancing the financial outcomes of CSR activities among listed firms in Ghana. 

Author Biographies

Anthony Buawolor Tetteh, Department of Banking and Finance, University of Professional Studies, Accra, Ghana

Anthony Buawolor Tetteh is a lecturer at the Banking and Finance Department at the University of Professional Studies, Accra (UPSA). He holds an MPhil in Finance from the UPSA. His research interests
encompass economic development, capital flight, financial markets development, anti-money laundering, intellectual capital, and income diversification. Anthony aims to bridge the gap between academia and the real world by advising financial institutions and advocating for informed policy decisions.

Sophia Awartey, Department of Accounting, University of Professional Studies, Accra, Ghana

Sophia Awartey is a member of the Institute of Chartered Accountants, Ghana (ICAG). She holds an MBA in Accounting and Finance and an MPhil in Accounting, both from the University of Professional Studies,
Accra. In addition, she is a professionally trained educator with 10 years of experience teaching accounting, taxation, public sector accounting, and fiscal policy. Her primary research interests include corporate governance, corporate social responsibility, intellectual capital, and firm performance.

John Kwaku Mensah Mawutor, Department of Accounting, University of Professional Studies, Accra, Ghana

John Kwaku Mensah Mawutor is a professor at the Department of Accounting at the University of Professional Studies, Accra (UPSA) and an astute professional accounting and finance practitioner with over 17 years of experience in higher education and the financial sector. He is currently the Pro-Vice Chancellor at the UPSA. His research area focuses on capital flight in Ghana and Sub-Saharan African countries. He is also a passionate anti-corruption crusader. He is an associate member of the Institute of Fraud Examiners (USA) and a member of the Institute of Chartered Accountants Ghana (ICAG).

Felix Kwame Aveh , Department of Accounting, University of Professional Studies, Accra, Ghana

Felix Kwame Aveh is a member of the Institute of Chartered Accountants, Ghana (ICAG), a development finance specialist, and a senior lecturer at the University of Professional Studies, Accra. Prior to entering academia, Felix worked for several years as the Director of Finance for Invensys Plc, UK. He also trained in PKF auditing firm, where he acquired vast experience as an auditor. He also served as assurance manager at Primebase Chartered Accountants from 2013 to 2018. Felix holds an MBA (Finance) from the
University of Ghana and a doctoral degree in development finance from the University of Bradford, School of Management, UK. 

Samuel Antwi, Department of Accounting, University of Professional Studies, Accra, Ghana

Samuel Antwi is a professor at the Department of Accounting. He is currently the dean of School of Graduate Studies, University of Professional Studies-Accra. He is also the managing consultant and a senior partner at Samyantwi and Associates. Professor Samuel Antwi is currently the lead consultant for the training partnership between Enterprise Life Assurance Company Ltd and The University of Professional Studies-Accra. Samuel is an elder of the Apostolic Church Ghana.

Isaac Ofoeda, Department of Banking and Finance, University of Professional Studies, Accra, Ghana

Isaac Ofoeda is a senior lecturer in finance at the University of Professional Studies, Accra (UPSA). He holds a PhD in finance from the University of Ghana Business School and is also a member of the Institute of Chartered Accountants, Ghana (ICAG). He is currently the head of department for the Banking and Finance Department. His research focuses on antimoney-laundering regulations, financial inclusion, financial sector development, corporate governance, financial markets and institutions regulations, foreign direct investment, and development finance. 

Published

2024-12-18

How to Cite

Tetteh, A. B., Awartey, S., Mawutor, J. K. M., Aveh , F. K., Antwi, S., & Ofoeda, I. (2024). Corporate Social Responsibility Reporting, Intellectual Capital, and Financial Performance of Listed Firms in Ghana. Journal of Comparative International Management, 27(2), 114–137. https://doi.org/10.55482/jcim.2024.33791

Issue

Section

Research Articles