Impact of Corporate Social Responsibility on Financial Distress Risk: Evidence from Vietnamese Listed Firms

Abstract

This study examines the impact of corporate social responsibility (CSR) on finnancial distress risk (FDR). We use OLS regression and a sample of 294 non-financial firms listed in Vietnam during 2016–2020. Our results provide strong evidence that CSR have a negative effect and statistically significant on FDR. In other words, firms pay more attention to CSR activity likely to manage their financial competence better than others which have to face financial distress risk. This finding is especially important because the sustainable development has been become a goal of a modern risk management approach for publicly listed firms in Vietnam.