The impact of the supervisory board on sustainability reporting in Vietnamese listed banks

Abstract

Sustainability reporting is a vital tool for businesses to present their activities and achievements in implementing sustainable development. It strengthens supervision and accountability to ensure information transparency in the banking industry. This study aims to examine the impact of the supervisory board on sustainability reporting in Vietnamese listed banks. Utilizing panel data from 2017 to 2024, the study as-sesses the period during which these banks brought about positive changes in economic integration. Secondary data from annual reports and financial statements of all listed banks in Vietnam are employed. The study employs quantitative methods to investigate the relationship between the supervisory board and sustainability report-ing, using a feasible generalized least squares estimation technique to test the research hypotheses. The findings provide valuable insights for stakeholders to understand the supervisory board’s positive influence on sustainability reporting in the banking indus-try. Furthermore, the study supports practical implications for bank administrators in planning to enhance the monitoring board’s effectiveness in controlling information quality, promoting increased disclosure of sustainability information to foster stake-holder confidence, and attracting investment capital for economic growth in the banking sector. The study contributes to creating opportunities for community benefits to raise awareness of stakeholders about the environment and social responsibility for sustainable development in the context of global economic integration.