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

Author

Listed:
  • Hien Thu Nguyen

    (Ho Chi Minh University of Technology (HCMUT), Ho Chi Minh City Vietnam National University, Ho Chi Minh City, Vietnam)

  • Nghia Dang Nguyen

    (Ho Chi Minh University of Technology (HCMUT), Ho Chi Minh City Vietnam National University, Ho Chi Minh City, Vietnam)

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.

Suggested Citation

  • Hien Thu Nguyen & Nghia Dang Nguyen, 2025. "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, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(3), pages 77-92.
    • Handle: RePEc:bjw:econen:v:15:y:2025:i:3:p:77-92
    DOI: 10.46223/HCMCOUJS.econ.en.15.3.3574.2025
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    References listed on IDEAS

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    1. Broadstock, David C. & Chan, Kalok & Cheng, Louis T.W. & Wang, Xiaowei, 2021. "The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China," Finance Research Letters, Elsevier, vol. 38(C).
    2. Osman Gök & Sinem Peker, 2017. "Understanding the links among innovation performance, market performance and financial performance," Review of Managerial Science, Springer, vol. 11(3), pages 605-631, July.
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    Keywords

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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