How does corporate social responsibility impact financial performance? Empirical evidence from Vietnamese listed firms on hose.

Abstract

This research aims to examine the impact of corporate social responsibility (CSR) on corporate financial performance (CFP) from short-term and long-term perspectives. We collect data on firms listed in VietNam Index from 2015 to 2019. We implement random and fixed effects panel data techniques on the sample data, which is adjusted for heteroskedasticity, serial correlation, and/or cross-sectional dependency. Our study investigates firm’s performance based on two different methods: accounting-based and market-based. The results show that CSR has positively associated with CFP. Thus, firms that implement CSR strategies achieve better financial performance than those that do not. Additionally, economic responsibility, one of three CSR’ components due to GRI standards adapted in emerging countries, significantly impacts financial performance compared with other perspectives.