The effect of corporate governance elements on corporate social responsibility reporting of listed companies in Vietnam

Figures & data

Table 1. Distribution of the usable sample by industrial classification

No	Sector	2019	2020	2021
1	Information Technology	2	2	2
2	Industrials	22	21	18
3	Materials	9	11	10
4	Financial	17	15	22
5	Utilities	7	7	7
6	Energy	2	2	2
7	Communication Services	1	1	0
8	Consumer Discretionary	8	8	6
9	Health Care	3	3	2
10	Food Beverage & Tobacco	11	12	11
11	Real Estate	18	18	20
	In Total	100	100	100

Table 2. Measurement of independent variables

Variables	Definition	Measurement
1. Board independence	Percentage of independent directors	The number of independent non-executive directors divided by the total number of directors on the board (%)
2. Board size	Total number of members on the board of directors	Number of members on the board (n)
3. CEO duality	Whether the CEO and the chairman of the board are the same	The dummy variable equals “1” if the same person holds the positions of CEO and chairman; it equals “0” if different individuals hold the position
4. Foreign ownership	Percentage of shares owned by the foreign investors	The proportion of foreign shareholders to total shareholders (%)
5. Government ownership	Percentage of shares owned by the government	The proportion of Government shareholders to total shareholders (%)

Table 3. Summary of the statistic of variables

Variable	N	Minimum	Maximum	Mean	Std dev.
CSR reporting index (CSRRI)	300	0	100	41.3	25.00
Board Independence (BOIND)	300	0	60	23.9	13.84
Board size (BOSIZE)	300	3	11	6.82	1.65
CEO duality (CEODU)	300	0	1	-	-
Foreign ownership (FOROWN)	300	0	88.3	21.3	17.8
Government ownership (GOVOWN)	300	0	96.8	16.3	26.7

Table 4. Statistics for components of information disclosure on CSR reporting

Variable	N	Minimum	Maximum	Mean	Std dev.
Environment	300	0	100	31.1	30.24
Employee	300	0	100	68.6	29.97
Local community	300	0	100	92.7	26.11

Table 5. Statistics for each item of information disclosure on CSR reporting

Item	2019 ^(*) (%)	2020 ^(*) (%)	2021 ^(**) (%)	Average from 2019 to 2021 (%)
EN1	-	-	13	13.0
EN2	-	-	18	18.0
EN3	28	34	20	27.3
EN4	22	20	17	19.7
EN5	36	42	36	38.0
EN6	32	21	29	27.3
EN7	24	21	35	26.7
EN8	35	40	37	37.3
EN9	21	19	18	19.3
EN10	45	44	58	49.0
EN11	42	40	51	44.3
EM1	82	90	93	88.3
EM2	55	51	60	55.3
EM3	74	80	89	81.0
EM4	49	47	40	45.3
EM5	65	68	85	72.7
SO1	87	94	97	92.7

^(*)In 2109, 2020, listed companies disclosed information according to Circular 52/2012/TT-BTC with 15 scales.

^(**)In 2021, disclosed information according to Circular 96/2020/TT-BTC with 17 scales, adding 2 more items (EN1 & EN2) compared to Circular 52.

Table 6. Correlation coefficients among independent variables

Variables	BOIND	BOSIZE	CEODU	FOROWN	GOVOWN	LSIZE	ROA	AGE
BOIND	1	0.321*	−0.015*	0.027	−0.142	−0.066	−0.061	−0.116
BOSIZE		1	−0.162	0.173	0.083	0.111**	0.003	0.230*
CEODU			1	−0.062	−0.075	−0.149	0.098	−0.088
FOROWN				1	−0.145*	−0.101	0.125	0.175**
GOVOWN					1	0.329**	0.031	0.406**
LSIZE						1	−0.197	0.209*
ROA							1	0.023
AGE								1

Notes: *. Correlation is significant at the 0.05 level (2-tailed);

**.Correlation is significant at the 0.01 level (2-tailed).

Table 7. Comparison among OLS, the FEM, and the REM

	OLS	FEM	REM
BOIND	0.3293 *** (3.279)	0.4318 ** (2.235)	0.3912 *** (4.494)
BOSIZE	0.0004 (0.048)	0.0315 (1.430)	0.4904 (1.189)
CEODU	−0.1495 (−1.292)	−0.0236 (−1.215)	0.0052 (1.081)
FOROWN	0.1232 ** (2.121)	0.2116 (0.652)	0.2890 ** (2.209)
GOVOWN	0.2396 *** (4.487)	0.1996 *** (4.372)	0.1225 ** (2.161)
LSIZE	0.0484 *** (3.868)	0.0331 ** (2.565)	0.0357 *** (3.919)
ROA	0.0304 ** (2.473)	0.0021 ** (2.034)	0.0723 (1.620)
AGE	0.2387 ** (2.037)	0.0086 ** (2.067)	0.2192 (1.264)
R-squared	0.409	0.283	0.119
Observartions	300	300	300
Variable inflation factor	< 3
F-test		27.02 ***
Breusch-Pagan LM			19.51 ***
Hausman		18.00**

***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively.

Table A1. Items specified in Vietnamese annual report

Aspects	CSR disclosure
Environment: Greenhouse gas (GHG) emissions	EN1: Total direct and indirect GHG emission
	EN2: Measures and initiatives to reduce GHG emission
Environment: Management of raw materials	EN3: The total amount of raw materials used for the manufacture and packaging of the products as well as services of the organization during the year
	EN4: The percentage of materials recycled to produce products and services of the organization
Environment: Energy consumption	EN5: Energy consumption—directly and indirectly
	EN6: Energy savings through initiatives of efficiently using energy
	EN7: The report on energy saving initiatives, providing products and services to save energy or use renewable energy
Environment: Water consumption	EN8: Water supply and amount of water used
	EN9: Percentage and total volume of water recycled and reused
Environment: Compliance with the law on environmental protection	EN10: Number of times the company is fined for failing to comply with laws and regulations on environment
	EN11: The total amount to be fined for failing to comply with laws and regulations on the environment
Employees: Policies related to employees	EM1: Number of employees
	EM2: Average wages of workers
	EM3: Labor policies to ensure health, safety and welfare of workers
	EM4: The average number of training hours per year, according to the staff and classified staff
	EM5: The skills development and continuous learning program to support workers employment and career development
Society: Responsibility for local community	SO1: The community investments and other community development activities, including financial assistance to community service