Factors affecting the environmental, social, and governance reporting capability of listed companies on the Vietnamese stock market

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Abstract

Environmental, social, and governance (ESG) indicators and reports are becoming one of the crucial reports of businesses, particularly for listed companies. In the world, ESG is a new concept concerned with how to achieve sustainable development in enterprises in terms of environment, society, and corporate governance (Jin & Lei, 2023). In Vietnam, ESG is getting off with positive steps. Public companies first adopted and published the report. The government also implements ESG policies to develop the nation’s sustainable economy. However, the application and publication of ESG reports in Vietnam still face many challenges, and the number of enterprises that disclose ESG remains limited. The study aims to explore and analyze the factors considered to have an impact on Vietnamese public companies’ ability to disclose ESG reports. The research model is based on secondary data from 216 listed companies in the Vietnamese stock market, utilizing a combined logit and probit regression model and employing the Hosmer-Meleshow, Collins, and Durbin-Watson tests. The results indicate that business size has a positive impact, while financial leverage, business sector, and ownership structure have a negative impact. Profitability has no impact on ESG reporting capability. The results from this article can support the development of policies and regulations to promote ESG reporting by Vietnamese businesses and contribute to the sustainable development of the economy.

Keywords: Business Sector, Disclosure ESG Report, Financial Leverage, Profitability, Ownership Structure

Authors’ individual contribution: Conceptualization — T.M.P.N.; Methodology — T.M.H.; Validation — T.M.P.N.; Writing — Review & Editing — T.M.P.N. and T.M.H.; Visualization — T.M.H.; Supervision — T.M.P.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G3

Received: 16.02.2024
Accepted: 17.01.2025
Published online: 21.01.2025

How to cite this paper: Nguyen, T. M. P., & Hoang, T. M. (2025). Factors affecting the environmental, social, and governance reporting capability of listed companies on the Vietnamese stock market. Corporate & Business Strategy Review, 6(1), 145–155. https://doi.org/10.22495/cbsrv6i1art14