The impact of disclosing information on activities responding to climate change on the performance of Vietnamese commercial banks

Abstract

This paper aims to analyze the impact of disclosing information on climate change response activities on the performance of Vietnamese commercial banks. Drawing on a research sample of 20
Vietnamese commercial banks during the period 2008 - 2022, the authors use the Generalized Method of Moments (GMM) to investigate the impact of climate change disclosure variables (measured through text analyzing method) on commercial bank performance (measured through return on average assets and return on average equity). The empirical results show a positive correlation between disclosing information on activities in response to climate change and bank performance. These findings provide a basis for making recommendations for the management of the banking system in general and for improving the performance of commercial banks in particular.