The impact of corporate social responsibility disclosure on financial performance: Empirical evidence from energy sector firms in Vietnam

Abstract

The energy sector not only plays a crucial role in the economy but also has far-reaching impacts on the environment and society as a whole. Consequently, enterprises in this sector must meet the dual challenge of achieving financial performance while fulfilling their social responsibilities toward stakeholders. This study aims to examine the impact of corporate social responsibility (CSR) disclosure across three key dimensions: environment, employees, and community on the financial performance of energy companies listed on the Vietnamese stock exchange from 2013 to 2023. By employing the Generalized Method of Moments (GMM) model and utilizing a dataset comprising 21 listed energy companies with 226 observations, the research findings indicate that: (i) CSR disclosure has a positive impact on corporate financial performance; (ii) CSR disclosure related to the community exerts the most significant influence on financial performance; and (iii) CSR disclosure has a stronger impact on Return on Assets (ROA) rather than market-based indicators (Tobin’s Q- TBQ).