Corporate social responsibility disclosure and firm performance: Evidence from Vietnam

Abstract

Corporate social responsibility (CSR) is quite a new concept to business and society in Vietnam. Information on CSR reflects a firm’s commitment to ethical behavior in its activities and reputation. However, it is questioned whether the information disclosure has any relationship with firm performance. Employing panel regression of about 200 listed firms on the Vietnam Stock Exchange and space-based measurement of CSR disclosure, the study confirms a positive impact of CSR disclosure on firm performance. Firms use CSR disclosures to indirectly improve their performance. Firms that disclose CSR with greater degree of information experience higher marginal profitability. This finding supports stakeholder theory, legitimacy theory, and signaling theory in using CSR disclosure as a tool to improve firms’ reputation and transparency, maintain long-term operation, and hence improve financial performance. During the COVID-19 pandemic, firms that engage more in CSR will suffer less from the pandemic than firms that do not. Thus, the study implies a promising CSR picture for corporations in Vietnam. Investors, policy makers and any related authorities can utilize these findings to get more insight into the business through CSR disclosures.

Determinants of Financial Leverage in Oil and Gas Listed Firms: Evidence from Malaysia

“…Likewise, Wu and Yue (2009) elucidated that profitable listed companies raise their debt levels when the tax advantages of debt increase. Moreover, Sayilgan et al (2006) also found evidence supporting a positive association between profitability and leverage. These researchers postulate that a profitable firm would seek a higher level of debt due to its greater borrowing capacity and ability to meet loan repayment obligations.…”