Mediating Effect of Corporate Social Responsibility in the Relationship between Innovation and Firm Value

Corporate social responsibility (CSR) is becoming increasingly an integral part of business practice. This study aims to explain the relationship between CSR practices and firm value by adding two key variables: invest in innovation and invest in marketing. The sample of empirical study consists of manufacture firms registered in Borsa Istanbul/Turkey. Research findings indicated that the CSR practices influence directly and positively to firm value. Higher marketing expenditures leads to less firm profitability and no impact on firm value. Investing in R&D impacts positively to CSR practices and profitability. CSR plays a mediating role between R&D intensity and firm value relationship. There isn't significant mediating effect of marketing intensity between CSR and firm value.