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

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.