Board size and performance: the mediating of ESG disclosure

Abstract

This study examines the mediating effect of ESG disclosure on the relationship between board size and performance of firms listed in the Ho Chi Minh City Stock Exchange (HOSE) in 2022. Return on assets (ROA) is a proxy for performance; as the dependent variable and board size is the independent variable; ESG disclosure is the mediating variable. Using structural equation model (PLS-SEM), we found that board size is significantly positively related to performance. There is significant positive impact between ESG disclosure and performance. Finally, ESG disclosure plays a partial mediating role on the relationship between board size and performance. To sum up, board size characteristics promote ESG disclosure activities to establish and reach higher performance. These results denote the importance and value of ESG disclosure in Vietnam.