The impact of Sustainable Development Goals (SDGs) disclosure on financial performance and stock volatility: Evidence from companies listed in Vietnam stock exchange during Covid - 19

Abstract

Drawing on stakeholder theory, portfolio theory, and signaling theory, this study examines the impact of Sustainable Development Goals (SDGs) disclosure on a firm’s financial performance and stock volatility during the Covid-19 pandemic, on sample of 322 listed non-financial firms in Ho Chi Minh Stock Exchange. The data analysis technique used in this research is the panel regression model, FGLS, and Robust Standard Errors Model estimation. We find that the firm’s financial performance decreased during the Covid year, and SDG has a no significant effect on the firm’s financial performance in this period. However, we find a positive relationship between SDG disclosure and stock volatility in the year with Covid -19. These findings of this research not only help understand the effect of SDGs information transparency on business and societal development but also have implications for Vietnamese authorities to improve the efficiency of the Vietnam stock market and are relevant to investors' effective portfolio investment decisions, businesses working in sustainability to take noteworthy decisions.