The impact of ESG reporting quality on financial performance of non-financial listed companies in Vietnam

Abstract

With the development of ESG, research on the impact of ESG reporting on the financial performance of businesses has gained increasing attention. This study aims to evaluate the relationship between the quality of ESG reporting, measured by ESG scores, and the financial performance of listed companies in Vietnam. Using a quantitative method, the research analyzes a sample of 18 non-financial companies in the VN30 and VNSI groups from 2017 to 2023. The findings reveal that the quality of ESG reporting positively influences corporate financial performance, as measured by ROE. Additionally, factors such as company size and growth rate also positively affect financial performance, whereas financial leverage has a negative impact. The study recommends that companies focus on improving the quality of ESG reporting, aligning with emerging trends and regulatory requirements to enhance financial efficiency, strengthen brand reputation, and increase resilience to economic fluctuations