Scholarlink

<p>This study investigates the relationship between human capital investment and ESG in African firms. We examine how product market competitiveness and corporate reputation moderate this relationship. Using data from 24,700 firm-year observations from 30 African countries between 2010 and 2022 and advanced statistical techniques, we find that higher ESG levels make corporate investments in human capital more effective. Product market competitiveness and corporate reputation are significant in this relationship across African companies. Technological innovation further mediates the ESG–human capital link. Our findings underscore the pivotal role of ESG in enhancing human capital efficiency, particularly in competitive markets with strong reputations. This study provides original findings by examining the socioeconomic environment in Africa, a setting overlooked in existing literature, which explains the significance of ESG in developing human capital in developing countries. This study contributes to existing literature by integrating theories of signaling, resource dependence, stakeholders, and agency to examine the relationship between ESG and human capital investment in Africa. Practical implications include guiding policymakers to develop region-specific ESG and innovation frameworks and encouraging corporate boards to embed ESG in governance strategies to enhance market competitiveness. Managers should align ESG efforts with market conditions and leverage corporate reputation to drive sustainable workforce investments.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

ESG and human capital investment: a moderator effect based on product market competitiveness and corporate reputation in African companies

  • 期刊论文

  • 发表日期：

    2025年6月2日

查看全文
  • Hichem Dkhili

摘要

This study investigates the relationship between human capital investment and ESG in African firms. We examine how product market competitiveness and corporate reputation moderate this relationship. Using data from 24,700 firm-year observations from 30 African countries between 2010 and 2022 and advanced statistical techniques, we find that higher ESG levels make corporate investments in human capital more effective. Product market competitiveness and corporate reputation are significant in this relationship across African companies. Technological innovation further mediates the ESG–human capital link. Our findings underscore the pivotal role of ESG in enhancing human capital efficiency, particularly in competitive markets with strong reputations. This study provides original findings by examining the socioeconomic environment in Africa, a setting overlooked in existing literature, which explains the significance of ESG in developing human capital in developing countries. This study contributes to existing literature by integrating theories of signaling, resource dependence, stakeholders, and agency to examine the relationship between ESG and human capital investment in Africa. Practical implications include guiding policymakers to develop region-specific ESG and innovation frameworks and encouraging corporate boards to embed ESG in governance strategies to enhance market competitiveness. Managers should align ESG efforts with market conditions and leverage corporate reputation to drive sustainable workforce investments.