The Relationship Between Corporate Social Responsibility Disclosures And Corporate Value: Evidence from Listed Companies on Vietnam’s Stock Market

Abstract

Information on corporate social responsibility is part of non-financial information which shows the interaction of business with society and the living environment, specifically, information on environmental pollution control, human rights, product liability, labor relations, charitable activities. Corporate social responsibility disclosure is considered a means to help enterprises increase their reputation, enhance their competitiveness, and strengthen relationships with stakeholders. The sharing of this information has become a global business trend. This study uses Two-Stage Least Squares (2SLS) Regression Analysis to examine the reciprocal relationship between corporate social responsibility disclosures and corporate value represented by the Tobin'Q ratio through a sample of 43 listed firms on Vietnam’s stock market during the period 2006–2016 with 473 observations. The results show that there is a positive reciprocal relationship between corporate social responsibility disclosures and corporate value Tobin'Q.