The Threshold Effect of Board Characteristics, Corporate Social Responsibility and Brand Value

Аннотация

Brand value remains a crucial element for listed companies striving to sustain competitiveness amid the double-cycle economic context. Using panel data from Chinese A-share listed companies spanning 2017–2021, this study employs a threshold effect model to probe into the boundary conditions of the complex relationship between corporate social responsibility (CSR) and brand value. It empirically investigates the role of board characteristics in shaping the brand value of listed companies through their involvement in CSR, considering the dimensions of board size and board shareholding ratio. The results reveal that a commitment to social responsibility enhances brand value up to a certain point. However, prolonged and extensive resource investment can divert the company’s focus, leading to a detrimental impact on brand value. This manifests as a non-strict inverted U-shaped threshold effect between CSR and brand value. Furthermore, the study explores variations in board size and board shareholding ratio, uncovering that board members’ perspectives on CSR commitment are subject to distinct constraints. This dynamic results in a non-linear, symmetric U-shaped relationship between CSR and brand value-initially negative and subsequently positive. The study explores whether board characteristics intervene in CSR decision-making and thus contribute to brand value, with a view to guiding listed companies’ board governance practices and optimizing the path to brand value enhancement.