The impact of ESG disclosure on business performance of Vietnamese listed companies

Abstract

This paper investigates the impact of ESG disclosure on the business performance of listed non-banking firms in Vietnam to fill the significant gap in the literature on ESG disclosure in developing countries like Vietnam, where challenges such as limited resources and measurement constraints exist. The data were collected from various sources, including annual reports, the World Bank, CafeF, and Vietstock, for 164 of the largest firms listed on the two stock exchanges of Vietnam from 2014 to 2023. The FGLS model was utilized to generate the statistical outcomes. The main finding is that ESG composite disclosure plays a significant role in business performance, yet the impact of its individual factors remains inconclusive. This study highlights how firms in developing economies should integrate ESG into their strategies, leveraging it as a tool for sustainable growth and competitive advantage.