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This paper examines the impact of diverse consumption of energy sources on firm performance, focusing on the moderating role of corporate social responsibility (CSR). The paper uses 45,579 firm-level panel data samples across 56 developing and developed economies from 2002 to 2021. It is observed that the impact of energy diversification in improving firms' performance (measured by the return on assets, return on equity, sales growth, and Tobin's Q) is more potent in firms with higher CSR engagement. The moderating effect of CSR is also more pronounced among firms in high energy-consuming industries than in low energy-consuming ones. Finally, the moderating role of CSR activities is more substantial for firms in countries with individualistic and long-term-oriented cultures. • We study the impact of energy diversification on firm performance across the globe with a focus on the moderating role of CSR. • We find that energy diversification improves firm performance more significantly in firms with higher CSR engagement. • The moderating effect of CSR is more pronounced for firms in high energy-consuming industries. • The moderating effect of CSR is stronger for firms in countries with individualistic and long-term-oriented cultures.
Gözgör et al. (Tue,) studied this question.