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This study employs a novel perspective to assess corporate social responsibility (CSR) as a way of advertising by focusing on the biohealth industry. The biohealth industry is emerging as an important contributor to society, as its business operations directly affect people’s lives. The industry is based on intensive research and development (R&amp;D). Based on CSR’s positive role in building brand equity, we examine whether the effect of CSR performance is positively associated with firm valuation and the effects of R&amp;D. Further, we assess the interplay between CSR performance and R&amp;D in the biohealth industry. The study also examines the moderating role of CSR performance on the interacting effect of traditional advertising and R&amp;D on firm valuation. This highlights the relationship between R&amp;D as strategic investment, strategic employment of CSR as advertising, and traditional advertising.

Advertising Role of CSR and Strategic Investment in R&D: Evidence from the Biohealth Industry