The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market

Nguyen La Soa (), Do Duc Duy, Tran Thi Thanh Hang and Nguyen Dieu Ha
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Nguyen La Soa: School of Accounting and Auditing, National Economics University, Hanoi 100000, Vietnam
Do Duc Duy: School of Accounting and Auditing, National Economics University, Hanoi 100000, Vietnam
Tran Thi Thanh Hang: School of Accounting and Auditing, National Economics University, Hanoi 100000, Vietnam
Nguyen Dieu Ha: School of Accounting and Auditing, National Economics University, Hanoi 100000, Vietnam

JRFM, 2024, vol. 17, issue 2, 1-17

Abstract: This research study aims to assess the impact of environmental accounting information disclosure on financial risk within the context of Vietnam’s stock market. The data collection process involved 60 non-financial companies, carefully selected from both the pool of 100 Sustainable Companies listed in the “Programme on Benchmarking and Announcing Sustainable Companies in Vietnam (CSI)”, as organized by VBCSD, and companies outside this list. The data span a timeframe from 2018 to 2022. Afterward, we utilize regression models to assess relationships and employ the t -test to evaluate differences. The results indicate that environmental accounting information disclosure has an inverse effect on the financial risk of the current year and the following year. This implies that companies that are more transparent and proactive in reporting their environmental performance are likely to experience decreased financial risk. Furthermore, the results also show differences in financial risk between the group of companies within the “100 Sustainable Companies” list and the group of companies outside this list. This disparity underscores the potential financial benefits of being recognized as a sustainable company. Based on the findings, the research team has provided several recommendations to enhance environmental accounting information disclosure and awareness.

Keywords: environmental accounting; environmental accounting information disclosure; financial risk; sustainable companies; CSI (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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