Nonlinear <scp>CSR</scp> ‐Performance Dynamics: The Moderating Role of <scp>CEO</scp> Expertise in Vietnam

ABSTRACT Corporate social responsibility (CSR) is widely promoted as a driver of firm performance, but empirical evidence remains inconsistent, particularly in emerging markets where institutional structures are still evolving. This study examines whether CSR creates firm value conditionally rather than uniformly, by analysing its nonlinear relationship with performance and the role of CEO financial expertise in shaping this linkage. Using panel data from the 100 largest firms listed in Vietnam between 2019 and 2024, we construct a disclosure‐based CSR index and estimate dynamic panel models using the Difference Generalized Method of Moments to address endogeneity. The results reveal a robust inverted U‐shaped relationship between CSR and firm performance, indicating that CSR enhances returns only up to an optimal level, beyond which additional engagement becomes value‐reducing. Moreover, CEO financial expertise exhibits a dual effect. While it is associated with lower short‐term profitability, it strengthens the marginal effectiveness of CSR by improving the allocation, evaluation, and strategic integration of social investments. This finding suggests that CSR does not function as a value‐creating resource in itself but becomes one when filtered through managerial capability. By integrating stakeholder theory, the resource‐based view, and upper echelons theory, this study reframes the CSR–performance relationship as contingent on managerial expertise rather than universally beneficial. The findings highlight the importance of aligning CSR intensity with firm capabilities and underscore the role of financially trained executives in converting CSR from symbolic compliance into economically meaningful strategy, particularly in emerging market contexts.