Corporate Social Responsibility Disclosure and Financial Performance: The Mediating Role of Financial Statement Comparability

Cao Thi Mien Thuy, Nguyen Vinh Khuong, Nguyen Thi Canh and Nguyen Thanh Liem
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Cao Thi Mien Thuy: Faculty of Finance and Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
Nguyen Vinh Khuong: Vietnam National University, Ho Chi Minh City 700000, Vietnam
Nguyen Thi Canh: Faculty of Finance and Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam
Nguyen Thanh Liem: Faculty of Finance and Banking, University of Economics and Law, Ho Chi Minh City 700000, Vietnam

Sustainability, 2021, vol. 13, issue 18, 1-15

Abstract: The aim of this study is to investigate the relationship between corporate social responsibility (CSR) disclosure and financial performance with the consideration of the mediating role of financial statement comparability (FSC) for a sample of Vietnamese listed firms. We used content analysis of the information related to the GRI Standards on annual reports in order to construct CSR disclosure score. We used a dataset of 1125 firm-year observations, covering 225 firms listed on Vietnam’s stock market in the period 2014–2018. Applying OLS and GMM estimation methods, Sobel test, and using different proxies of the mediator variable to increase the robustness, we obtained two remarkable conclusions. First, CSR disclosure has a positive impact on the financial performance of listed companies in Vietnam. Second, there is a complementary mediation effect of financial statement comparability in the above relationship. Our results suggest that it is necessary to develop a legal framework for the practice and disclosure of CSR as well as to apply the international accounting standards in the Vietnamese stock market.

Keywords: corporate social responsibility disclosure; financial statement comparability; financial performance; mediation effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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