Purpose Although intellectual capital (IC) has been proven to be value-added for companies, the drivers of IC performance remain an under-researched area. From the perspective of corporate governance, the purpose of this paper is to examine how controlling the ownership of shareholders would influence IC performance. Design/methodology/approach This study utilized value-added intellectual capital (VAICTM) and its subcomponents, namely human capital, structural capital and capital employed efficiencies, to proxy for IC performance and regression analyses to assess the association between controlling the ownership of shareholders and the IC performance of Taiwanese listed semiconductor firms for the years 2009–2017. Findings Results show that controlling the ownership of shareholders is nonlinearly related to IC performance. Specifically, controlling their ownership positively affects the level of IC performance up to an optimal point before it turns to be a negative relationship thereafter. Practical implications The results of this study can help policy makers and other stakeholders understand the role of controlling shareholders in determining IC performance. The findings of this study suggest a nonlinear relationship between controlling the ownership of shareholders and IC. Originality/value This study provides an extended perspective in studies related to the determinants of IC by considering the resources provided by controlling shareholders. The definitions of controlling interests and IC applied in this study are compared and aligned with those found in the International Financial Reporting Standard 10 – Consolidated Financial Statements and the International Integrated Reporting Council, respectively.

This study discusses how corporate social responsibility (CSR) affects firm’s cost of capital in Taiwan advantage technology industry including semiconductor and photoelectric industry in the Taiwan Stock Market with different ownership structure. We match sample by propensity matching method and analyze the relationship between corporate social performance (CSP) and the cost of capital. Our results show the CSP has negative significant effects with cost of capital under family-owned companies, but no significant effects with non-family-owned companies. This study further address how media reported CSR news affects both shareholders’ reaction and firm’s cost of capital.