The corporate environmental responsibility and corporate financial performance: evidences from Vietnamese listed companies

Abstract

Climate change has been the most challenging environmental problem that the world is facing. It will affect the future of our green planet which can be seen from different stances. Motivated by environmental problems could gain the sustainable growth and development. Besides, many environmental scandals in Vietnam prove that Vietnam do not pay enough intention to environment, present even a kind of environmental irresponsibility. This paper aims to investigate the relationship between corporate environmental responsibility (CER) and corporate financial performance (CFP) on a sample of Vietnamese listed companies with a period of 4 years (2012 – 2015) with 156 companies/year observations. The environmental index was built and examined approach to by content analysis the companies’ annual report, after that using method of Karlsson (2005) and Ong et al (2014) to measure relationship between corporate environmental responsibility and the corporate financial performance as well as disclosed and reported CER information by listed companies. The results indicate that efforts of environmental protection and activities may help them achieve higher finance performance in the same time and in the future as well.