Corporate social responsibility disclosure and firm performance: Evidence from Vietnam

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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.

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    • Table 1. Explanation of variables
    • Table 2. Descriptive statistics for all firms
    • Table 3. Descriptive statistics for mid-cap firms
    • Table 4. Descriptive statistics for large-cap firms
    • Table 5. Descriptive statistics for small-cap firms
    • Table 6. Correlation matrix
    • Table 7. Regression results of equation (2)
    • Table 8. Regression results of regression (3)
    • Table 9. Regression results of regression (4)
    • Conceptualization
      Ngoc Mai Tran, Manh Ha Tran
    • Data curation
      Ngoc Mai Tran
    • Investigation
      Ngoc Mai Tran
    • Methodology
      Ngoc Mai Tran, Manh Ha Tran
    • Resources
      Ngoc Mai Tran, Manh Ha Tran
    • Software
      Ngoc Mai Tran, Manh Ha Tran
    • Supervision
      Ngoc Mai Tran, Manh Ha Tran
    • Validation
      Ngoc Mai Tran, Manh Ha Tran
    • Visualization
      Ngoc Mai Tran
    • Writing – original draft
      Ngoc Mai Tran
    • Formal Analysis
      Manh Ha Tran
    • Project administration
      Manh Ha Tran
    • Writing – review & editing
      Manh Ha Tran