Effect of corporate governance on corporate social responsibility in Vietnam: state-ownership as the moderating role
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 17 May 2022
Issue publication date: 29 May 2024
Abstract
Purpose
This study aims to investigate the association between corporate governance (CG) and the corporate social responsibility (CSR) information disclosure as well as the moderating role of state-ownership between CG and CSR disclosure.
Design/methodology/approach
To examine the relationship between CG and CSR disclosure, this study used the feasible general least squares and generalized method of moments method on a sample of 165 non-financial quoted companies over the 2015–2018 period, which account for about three-fourths of the Vietnamese stock exchange.
Findings
The findings suggest that enterprises with smaller board size consisting mainly of independent directors have a higher CSR disclosure level. Moreover, when the chief executive officer is concurrently the chairman of the board, the level of CSR disclosure falls. Additionally, the moderating role of state ownership enhances CSR disclosure.
Research limitations/implications
The empirical results of this study form a solid foundation for policymakers and other stakeholders’ decisions in investing or establishing policies.
Originality/value
This study provides empirical evidence on the relationship between CG and CSR disclosure in Vietnam – a developing country with no legal requirement on CSR disclosure. Moreover, this study emphasizes the moderating role of state ownership between CG and CSR disclosure, which clarifies the role of state ownership in establishing CG mechanisms.
Keywords
Acknowledgements
Data availability statement: Data of present study will be available on request from corresponding author.
Funding statement: This research is funded by University of Economics and Law, Vietnam National University Ho Chi Minh City, Vietnam.
Conflict of interest disclosure: the authors declare no conflict of interest
Ethics approval statement: The author adheres to the ethical guidelines required by journal.
Citation
Thuy, H.X., Khuong, N.V., Anh, L.H.T. and Quyen, P.N. (2024), "Effect of corporate governance on corporate social responsibility in Vietnam: state-ownership as the moderating role", Journal of Financial Reporting and Accounting, Vol. 22 No. 3, pp. 701-727. https://doi.org/10.1108/JFRA-10-2021-0367
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited