The Effects of Business Efficiency to Disclose Information of Sustainable Development: The Case of Vietnam

Abstract

This paper studies the impact of business efficiency on the level of sustainable development information disclosure of Vietnamese enterprises by using path structure model with the data of 294 enterprises listed on the stock market in 3 years from 2015 to 2017. Research results show that the level of sustainable development information disclosure of Vietnamese enterprises listed on the stock market is still quite low. This study has identified factors that positively influence the level of sustainable development information disclosure including business efficiency, firm size, Big4 and the number of members of the board of directors. The negative influencing factors with the level of sustainable development information disclosure are financial leverage and business sector. Based on the research results, the study propose some recommendations to improve the level of sustainable development information disclosure of enterprises in Vietnam: (i) promote disclosure of sustainable development for their benefit to businesses; (ii) supplement and improve the current legal system in Vietnam to create a solid legal basis for the implementation of sustainable development information disclosure. Contribution/ Originality: The contribution of this study is to apply path structure model with the data of 294 enterprises listed on the Vietnam stock market in 3 years from 2015 to 2017. This study has identified factors that positively influence the level of sustainable development information disclosure including business efficiency, firm size, Big4 and the number of members of the board of directors. The negative influencing factors with the level of sustainable development information disclosure are financial leverage and business sector. that large organizations such as the United Nations, European Union, and developed countries such as the US, UK, Germany, and so on are interested in and implement. However, in developing countries and underdeveloped countries, small enterprises are concerned about economic growth instead of the implementation of social