The impact of environmental report disclosure on the business performance of companies whose shares have been admitted to trading on UpCOM in Vietnam

Abstract

This study assesses the impact of environmental report disclosure on the business performance (ROA) of companies in Vietnam. Utilizing data from large-scale companies whose shares are registered for trading on the UpCOM market of the Hanoi Stock Exchange, and which disclosed environmental reports in accordance with Circular 96/2020/TT-BTC (guiding information disclosure on the stock market) for the assessment period 2022- 2023. Employing a panel data regression model (GLS), with environmental report compliance (a binary variable) as the independent variable, alongside control variables (size, leverage, and growth), the findings indicate that environmental report disclosure exhibits a positive and statistically significant association with ROA. This implies that adherence to environmental reporting standards is not merely a corporate responsibility but may also be associated with enhanced company performance.