Corporate social responsibility and financial performance: the mediating role of corporate governance

Tam Phan Huy, Anh Luu Quynh, Yen Le Hoang Phi, Quynh Hua Nguyen Nhu, Ngan Nguyen Thi Tuyet and Ha Nguyen Ngan

International Journal of Behavioural Accounting and Finance, 2025, vol. 7, issue 4, 337-364

Abstract: This study explores the relationship between corporate social responsibility (CSR), governance mechanisms, and financial performance (return on asset (ROA)) in 62 manufacturing firms listed on the Ho Chi Minh City Stock Exchange from 2018 to 2022. Using regression analysis on data manually collected from annual reports, it examines how CSR dimensions - economic, environmental, and social - interact with governance structures such as board size and independence. Results show that while CSR positively influences ROA, the governance structure significantly moderates this effect. For instance, large boards may hinder the effectiveness of environmental CSR, whereas firms where the CEO also serves as chairman tend to support CSR more actively. The findings underscore the importance of aligning governance with CSR strategies to enhance firm performance, offering valuable insights for stakeholders in rapidly growing industries.

Keywords: CSR; corporate social responsibility; financial performance; corporate governance; manufacturing; ROA; return on asset. (search for similar items in EconPapers)
Date: 2025
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