Research on Effects of Board of Directors’ Characteristics on Corporate Social Responsibility Disclosure - Manufacturing Listed Firms on the Stock Exchange of Vietnam

Author:

Buch Thu Pham Thi

Abstract

Manuscript type: Research paper Research aims: This study aims to assess how corporate governance characteristics affect the disclosure of corporate social responsibility (CSR) among manufacturing companies listed on the stock market of Vietnam. Design/Methodology/Approach: The study analyses the annual reports of 195 companies listed on the Vietnam stock market between 2018 and 2022, to investigate the influence of board size, board independence, women on board, board meetings, managerial ownership, and female leadership on corporate social responsibility disclosure (CSRD). The Fixed Effects Model (FEM) and Random Effects Model (REM) were employed to determine the optimal model. Subsequently, defects and regression were analysed using the General Least Squares (GLS) model. Research findings: The findings reveal that the managerial ownership factor has the most substantial negative impact on CSRD; followed by the female leadership a positive influence on CSRD. Lastly, the board size factor has a positive effect on CSRD, with a significant alignment with previous research. Additionally, board independence, women on board, and board meetings have an insignificant influence on CSRD. Theoretical contribution: Based on the findings, manufacturing companies listed on the stock market of Vietnam demonstrate a level of corporate social responsibility disclosure that is slightly below average (47.9%). The findings revealed that the involvement of women in management becomes meaningful when they possess actual control, whereas their mere presence on boards does not affect CSR disclosure. Practitioner/Policy implications: The results provide valuable insights for policymakers in identifying the corporate governance characteristics that can foster CSR reporting in Vietnamese listed companies. Research limitation/Implications: The research relied on annual CSR reporting as a metric to assess CSR disclosure, disregarding various other communication channels used by companies to communicate their CSR initiatives. Furthermore, the study did not assess the disparity in CSRD levels across various types of enterprises and different scales of businesses.

Publisher

Univ. of Malaya

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