The Influence of Financial Indicators on Vietnamese Enterprise’s Sustainability Reports Disclosing Process

Nguyen Thi Mai Anh, Nguyen Thanh An, Nguyen Thi Minh Ngoc and Vu Ngoc Xuan ()
Additional contact information
Nguyen Thi Mai Anh: Department of Financial Accounting, School of Accounting and Auditing, National Economics University, Hanoi 100000, Vietnam
Nguyen Thanh An: School of Advanced Education Programs, National Economics University, Hanoi 100000, Vietnam
Nguyen Thi Minh Ngoc: School of Advanced Education Programs, National Economics University, Hanoi 100000, Vietnam
Vu Ngoc Xuan: Department of Microeconomics, Faculty of Economics, National Economics University, Hanoi 100000, Vietnam

JRFM, 2024, vol. 17, issue 4, 1-21

Abstract: Sustainability reporting has become increasingly crucial for businesses worldwide, communicating environmental, social, and governance (ESG) performance to stakeholders. Despite the growing importance of sustainability reporting, there remains a gap in understanding how financial indicators influence the disclosure process, particularly in Vietnamese enterprises. This paper aims to address this gap by investigating the influence of financial indicators on the sustainability reporting practices of Vietnamese companies. Employing a mixed-methods approach, combining a quantitative analysis of financial data with a qualitative assessment of sustainability reports, the research seeks to uncover the nuanced relationship between financial performance metrics and the quality and extent of sustainability disclosures. The research was conducted to identify, evaluate, and measure financial factors affecting the quality of companies’ sustainability reports in Vietnam. The research is based on scoring the sustainable development reports of the top 100 listed joint stock companies on the HOSE—Ho Chi Minh City Stock Exchange. Based on the research model of Dissanayake, in the case of Vietnam, we build a scoring model for the sustainable development report based on GRI standards and add additional criteria appropriate to the situation of each listed company on the Vietnam stock exchange. Based on the research overview, our team tested hypotheses related to the short-term current ratio, total asset turnover ratio (AT), return on equity ratio (ROE), and debt-to-equity ratio (DE). The empirical results show that the AT and ROE significantly positively affect the sustainability reports; the DE hurts the sustainability reports. The findings are expected to provide valuable insights into the factors shaping sustainability reporting practices in Vietnam and contribute to the existing literature on corporate disclosure and sustainability.

Keywords: sustainability report; financial indicators; GRI standard; return on equity (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/17/4/146/pdf (application/pdf)
https://www.mdpi.com/1911-8074/17/4/146/ (text/html)

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:gam:jjrfmx:v:17:y:2024:i:4:p:146-:d:1370360

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().