Corporate social responsibility disclosure and firm risk: Empirical evidence in Vietnam

Abstract

Corporate social responsibility disclosure (CSRD) has been a strategic goal in recent decades for businesses. Enterprises with high CSRD scores has been proven to have a positive impact on firm
performance, corporate governance, corporate reputation and risk reduction. The paper studies the impact of corporate social responsibility disclosure (CSRD) on firm risks in Vietnamese listed firms during 2010-2021. Firm risks are measured by beta coefficient- systematic risk and Altman Z-Score- the risk of bankruptcy. The empirical results from the multivariable regression models indicate that firms with effective social responsibility activities shown by a high CSRD score will have an impact on reducing risks. In addition, the paper also proves other factors including firm size, financial leverage, liquidity, and loss tolerance, have certain effects in bearing risks of Vietnamese listed firms.