How sustainability reporting shapes dividend policy: evidence from Vietnam's listed companies

Hien Khanh Duong and Huu Cuong Nguyen

Asian Journal of Accounting Research, 2025, vol. 11, issue 2, 183-200

Abstract: PurposeThis study examines the relationship between sustainability reporting, guided by Global Reporting Initiative standards, and dividend policy among Vietnamese listed firms.Design/methodology/approachMultinomial logistic regression is employed to analyse how disclosures aligned with the Sustainable Development Goals (SDGs) influence dividend policy in the 100 largest firms listed on the Hanoi and Ho Chi Minh stock exchanges between 2021 and 2023. The study investigates whether higher levels of SDG disclosure affect both the form and magnitude of dividend payouts.FindingsThe results reveal that firms with more extensive SDG disclosures are significantly more likely to pay dividends, either in cash or shares. Notably, higher disclosure levels are positively associated with dividend payouts exceeding 50% and negatively associated with the decision to omit dividends altogether.Research limitations/implicationsThe study contributes to signalling theory by highlighting the strategic role of SDG disclosures in communicating corporate stability and governance quality through dividend policy.Practical implicationsThe findings underscore the relevance of sustainability disclosures in shaping corporate dividend strategies, especially during periods of financial uncertainty, offering practical guidance to managers on improving reporting practices.Social implicationsGiven Vietnam's vulnerability to climate-related risks, robust sustainability reporting is essential for maintaining investor trust and supporting broader economic resilience.Originality/valueThis is the first study to provide a comprehensive assessment of how GRI-based sustainability reporting influences dividend policy in Vietnam. It offers novel insights into how transparency in sustainability practices informs financial decision-making in emerging markets.

Keywords: Dividend policy; Emerging markets; Multinomial logistic regression; SDGs; Sustainability reporting (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ajar/article/11/2/183/1299 ... ting-shapes-dividend (text/html)
https://www.emerald.com/ajar/article-pdf/11/2/183/ ... r-01-2025-0017en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-01-2025-0017

DOI: 10.1108/AJAR-01-2025-0017

Access Statistics for this article

Asian Journal of Accounting Research is currently edited by Dr. Iman Harymawan

More articles in Asian Journal of Accounting Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().