Oil shocks, ESG disclosure and corporate payouts: An empirical study from Vietnamese listed companies

Abstract

This study examines the impacts of oil shocks driven by demand-and-supply factors, ESG disclosure on corporate payouts of Vietnamese non-financial firms listed in the Ho Chi Minh Stock Exchange (HSX). The author decomposes specific factors of oil shocks into demand and supply sides, then takes corporate payouts into three measurements including payout decision, payout ratio, payouts scaled by total assets. Dealing with the sizable sample of Vietnamese data over the period from 2011 to 2021, the author figures out that oil demand shocks reduce corporate payouts and oil supply shocks have no impact on corporate payouts. Regarding the impact of ESG disclosure, the findings indicate that ESG disclosure exerts a remarkable positive influence on corporate decisions. Finally, these empirical results remain robust after the author applies alternative measurements of explanatory variables.