Esg Evaluation And Firm Performance - Evidence From Companies Ranked In The Vnsi List

Abstract

The concept of Environmental, Social, and Governance (ESG) evaluation has gained significant attention in the contemporary business environment. However, the relationship between ESG evaluation and firm performance in emerging markets, particularly in Vietnam, remains unclear and under-researched. This study aims to address this research gap by investigating the impact of ESG evaluation on operating performance, financial performance, and market performance of Vietnamese enterprises ranked in the VNSI list during the period of 2018 - 2022. Therefore, the research questions focus on the effects of ESG disclosure evaluations on these performance indicators. Our research utilises both qualitative and quantitative analysis, leveraging sustainability reports and the Global Reporting Initiative (GRI) as a framework for assessing the integration of ESG indicators. The results of our research show that there is a direct and positive relationship between ESG evaluations and operating, financial, market performance. The findings of this study will provide valuable insights for firms, investors, and policymakers in making decisions regarding ESG practices and sustainability in Vietnam.