Environmental, Social, and Governance impact on financial and market performance of listed companies in the Vietnam’s stock market

Authors

  • Hien Thu Nguyen
    Ho Chi Minh University of Technology (HCMUT), Ho Chi Minh City Vietnam National University, Ho Chi Minh City, VN
  • Nghia Dang Nguyen
    Ho Chi Minh University of Technology (HCMUT), Ho Chi Minh City Vietnam National University, Ho Chi Minh City, VN

DOI:

10.46223/HCMCOUJS.econ.en.15.3.3574.2025

Keywords:

ESG; firm performance; sustainability

JEL Classification:

G11; M14; Q01

Abstract

This study examines the impact of ESG activities, a corporate action that is gaining increasing attention, on firm performance. With a sample of 556 observations from 139 companies of VNX Allshare index being listed on HOSE and HNX within the period of 2018 - 2021, the study discovers that while firms that actively implement ESG earn superior financial performance over those passively implementing ESG, investing in those active-ESG stocks does not realize excess returns. This evidence suggests that market investors have not appropriately evaluated and sufficiently acknowledged the benefits of investing in ESG even though it brings financial outcomes. This research contributes to the understanding of the role and impact of ESG on businesses and investors in Vietnam.

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References

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Received: 19-07-2024
Accepted: 20-09-2024
Published: 18-10-2024

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How to Cite

Nguyen, H. T., & Nguyen, N. D. (2024). Environmental, Social, and Governance impact on financial and market performance of listed companies in the Vietnam’s stock market. HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 15(3), 77–92. https://doi.org/10.46223/HCMCOUJS.econ.en.15.3.3574.2025

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Copyright (c) 2024 Hien Thu Nguyen; Nghia Dang Nguyen

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.