Corporate environmental responsibility and financial performance: The moderating role of ownership structure and listing status of Vietnam banks

Figures & data

Figure 1. Research framework.

Table 1. CER grading form for bank

No.	Criteria	Proofs	Score
Env 1	Build an environmentally-friendly workplace
Env 2	Save energy and reduce greenhouse gas emissions
Env 3	Application of technology in internal operations of the bank
Env 4	Transform business activities into a digital banking model related to customer service products
Env 5	Adopt green credit policies
Env 6	Manage environmental and social risks in credit granting
Env 7	Provide training to employees about environment protection
Env 8	Promote environmental awareness in the community
Env 9	Comply with laws and regulations on environmental protection
Env 10	Receive environmental awards and prizes

Table 2. Description of variables and symbols in the models

Symbol	Describe	Determination formula	Source
Dependent variables $(\mathrm{F}\mathrm{P}$ : Financial performance)
NIM	Net interest margin	$\mathrm{N}\mathrm{I}\mathrm{M}=\frac{\mathrm{N}\mathrm{e}\mathrm{t}\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{t}\mathrm{i}\mathrm{n}\mathrm{c}\mathrm{o}\mathrm{m}\mathrm{e}}{\mathrm{A}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{g}\mathrm{e}\mathrm{i}\mathrm{n}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{t}\mathrm{\_}\mathrm{e}\mathrm{a}\mathrm{r}\mathrm{n}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{a}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}}$	CB
ROA	Return on total assets	$\mathrm{R}\mathrm{O}\mathrm{A}=\frac{\mathrm{P}\mathrm{r}\mathrm{o}\mathrm{f}\mathrm{i}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{t}\mathrm{a}\mathrm{x}}{\mathrm{A}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{g}\mathrm{e}\mathrm{t}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{a}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}\mathrm{s}}$	CB
ROE	Return on equity ratio	$\mathrm{R}\mathrm{O}\mathrm{E}=\frac{\mathrm{P}\mathrm{r}\mathrm{o}\mathrm{f}\mathrm{i}\mathrm{t}\mathrm{a}\mathrm{f}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{t}\mathrm{a}\mathrm{x}}{\mathrm{A}\mathrm{v}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{g}\mathrm{e}\mathrm{e}\mathrm{q}\mathrm{u}\mathrm{i}\mathrm{t}\mathrm{y}}$	CB
Independent variables
CER	The environmental responsibility index	$\mathrm{C}\mathrm{E}\mathrm{R}=\frac{{\sum }_{\mathrm{i}=1}^{10}\mathrm{E}\mathrm{n}{\mathrm{v}}_{\mathrm{i}\mathrm{j}}}{10}$	Authors
Moderating variable
DLB	Listed bank (Dummy variable)	1 if it is a listed bank; 0 if it is an unlisted bank;
DSOB	State-Ownership bank (Dummy variable)	1 if it is a state-controlled bank; 0 if it is a privately controlled bank;
Interactive variable
CERxDLB		Determined by the product of the variable CER and the variable DBL
CERx DSOB		Determined by the product of the variable CER and the variable DSOB
Control Variables
$\mathrm{S}\mathrm{I}\mathrm{Z}\mathrm{E}$	The size of bank	$\mathrm{S}\mathrm{I}\mathrm{Z}\mathrm{E}$ = Logarit (Total assets)	CB
$\mathrm{C}\mathrm{A}\mathrm{P}$	The equity-to-asset ratio	$\mathrm{C}\mathrm{A}\mathrm{P}=\frac{\mathrm{E}\mathrm{q}\mathrm{u}\mathrm{i}\mathrm{t}\mathrm{y}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{a}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}\mathrm{s}}$	CB
$\mathrm{L}\mathrm{D}\mathrm{R}$	The loan-to-deposit ratio	$\mathrm{L}\mathrm{D}\mathrm{R}=\frac{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{o}\mathrm{u}\mathrm{t}\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{n}\mathrm{d}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{l}\mathrm{o}\mathrm{a}\mathrm{n}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{d}\mathrm{e}\mathrm{p}\mathrm{o}\mathrm{s}\mathrm{i}\mathrm{t}}$	CB
$\mathrm{C}\mathrm{I}\mathrm{R}$	Management quality	$\mathrm{C}\mathrm{I}\mathrm{R}=\frac{\mathrm{O}\mathrm{p}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{e}\mathrm{x}\mathrm{p}\mathrm{e}\mathrm{n}\mathrm{s}\mathrm{e}\mathrm{s}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{o}\mathrm{p}\mathrm{e}\mathrm{r}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{i}\mathrm{n}\mathrm{c}\mathrm{o}\mathrm{m}\mathrm{e}}$	CB
$\mathrm{A}\mathrm{Q}$	Asset quality of bank	$\mathrm{A}\mathrm{Q}=\frac{\mathrm{C}\mathrm{o}\mathrm{s}\mathrm{t}\mathrm{o}\mathrm{f}\mathrm{t}\mathrm{h}\mathrm{e}\mathrm{c}\mathrm{r}\mathrm{e}\mathrm{d}\mathrm{i}\mathrm{t}\mathrm{r}\mathrm{i}\mathrm{s}\mathrm{k}\mathrm{p}\mathrm{r}\mathrm{o}\mathrm{v}\mathrm{i}\mathrm{s}\mathrm{i}\mathrm{o}\mathrm{n}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{o}\mathrm{u}\mathrm{t}\mathrm{s}\mathrm{t}\mathrm{a}\mathrm{n}\mathrm{d}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{l}\mathrm{o}\mathrm{a}\mathrm{n}}$	CB
$\mathrm{H}\mathrm{H}\mathrm{I}$	Herfindahl-Hirschman Index of the banking industry	$\mathrm{H}\mathrm{H}\mathrm{I}=\sum _{\mathrm{i}=1}^{\mathrm{n}}({\mathrm{M}\mathrm{S}}_{\mathrm{i}\mathrm{t}}^{\mathrm{A}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}}{)}^2{\mathrm{M}\mathrm{S}}_{\mathrm{i}\mathrm{t}}^{\mathrm{A}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}}=\frac{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{a}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}\mathrm{s}\mathrm{o}\mathrm{f}\mathrm{e}\mathrm{a}\mathrm{c}\mathrm{h}\mathrm{b}\mathrm{a}\mathrm{n}\mathrm{k}}{\mathrm{T}\mathrm{o}\mathrm{t}\mathrm{a}\mathrm{l}\mathrm{a}\mathrm{s}\mathrm{s}\mathrm{e}\mathrm{t}\mathrm{s}\mathrm{o}\mathrm{f}\mathrm{t}\mathrm{h}\mathrm{e}\mathrm{b}\mathrm{a}\mathrm{n}\mathrm{k}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{s}\mathrm{e}\mathrm{c}\mathrm{t}\mathrm{o}\mathrm{r}}$	CB, SBV
$\mathrm{G}\mathrm{D}\mathrm{P}$	Vietnam’s GDP growth rate		SBV
$\mathrm{I}\mathrm{N}\mathrm{F}$	Vietnam’s inflation rate		SBV
i: Bank; t: Time; $\alpha :$ Constant; $\beta ,\delta ,\gamma ,\theta :\mathrm{T}\mathrm{h}\mathrm{e}\mathrm{c}\mathrm{o}\mathrm{e}\mathrm{f}\mathrm{f}\mathrm{i}\mathrm{c}\mathrm{i}\mathrm{e}\mathrm{n}\mathrm{t}\mathrm{s}$; $\epsilon :\mathrm{T}\mathrm{h}\mathrm{e}\mathrm{e}\mathrm{r}\mathrm{r}\mathrm{o}\mathrm{r}\mathrm{t}\mathrm{e}\mathrm{r}\mathrm{m}$

Note: CB: Commercial banks; SBV: State bank of Vietnam.

Table 3. Level of CER disclosure among Vietnamese commercial banks from 2012 to 2019 Unit: %

	2012	2013	2014	2015	2016	2017	2018	2019	2012–2015	2016–2019
Research sample	18.3	16.6	21.0	27.2	32.4	36.6	39.7	45.2	20.8	38.5
Ownership structure
State-owned commercial banks	22.5	10.0	22.5	45.0	52.5	57.5	62.5	80.0	25.0	63.1
Private commercial banks	17.6	17.6	20.8	24.4	29.2	33.2	36.0	39.6	20.1	34.5
Listing Status
Listed group	22.9	21.8	25.9	33.5	40.6	45.3	45.3	51.2	26.0	45.6
Unlisted group	11.7	9.2	14.2	18.3	20.8	24.2	31.7	36.7	13.4	28.4

Table 4. Level of CER disclosure based on criteria Unit: %

Criteria	2012	2013	2014	2015	2016	2017	2018	2019	2012–2015	2016–2019	2012–2019
Env 1	10.7	14.3	10.7	17.9	17.9	25.0	32.1	42.9	13.4	29.5	21.4
Env 2	3.6	7.1	7.1	14.3	17.9	25.0	28.6	28.6	8.0	25.0	16.5
Env 3	51.9	39.3	53.6	57.1	67.9	71.4	64.3	75.0	50.5	69.6	60.1
Env 4	57.1	53.6	67.9	78.6	75.0	85.7	82.1	78.6	64.3	80.4	72.3
Env 5	10.7	10.7	17.9	21.4	32.1	35.7	40.7	50.0	15.2	39.6	27.4
Env 6	3.6	7.1	7.4	17.9	25.9	28.6	39.3	39.3	9.0	33.3	21.1
Env 7	7.1	7.1	3.6	14.3	21.4	28.6	32.1	39.3	8.0	30.4	19.2
Env 8	7.4	0.0	14.8	10.7	10.7	17.9	17.9	28.6	8.2	18.8	13.5
Env 9	35.7	21.4	25.0	39.3	46.4	50.0	60.7	60.7	30.4	54.5	42.4
Env 10	0.0	7.1	3.6	3.6	10.7	3.6	7.1	14.3	3.6	8.9	6.3

Table 5. Statistics of variables used in research model

Variable	Obs	Mean	Std. Dev.	Min	Max
NIM	232	0.02996	0.01284	0.00549	0.09325
ROA	232	0.00713	0.00587	0.00009	0.02902
ROE	232	0.08537	0.06899	0.00062	0.27731
CER	232	0.29612	0.25809	0	1
SIZE	232	5.07789	0.50397	4.12339	6.17317
CAP	232	0.08907	0.03889	0.02931	0.23841
CIR	232	0.55579	0.12922	0.28744	0.92793
LDR	232	0.78776	0.11497	0.42695	1.12531
AQ	232	0.00979	0.00779	0.00650	0.04936
HHI	232	0.05448	0.00432	0.04821	0.05974
GDP	232	0.06328	0.00691	0.05250	0.07200
INF	232	0.03831	0.01923	0.00630	0.06810

Figure 2. Histogram plots of variables.

Table 6. Variable correlation matrix and results of multi-collinearity test using VIF

Variable	NIM	ROA	ROE	CER	SIZE	CAP	CIR	LDR	AQ	HHI	GDP	INF	VIF
NIM	1
ROA	0.6888*	1
ROE	0.5308*	0.8639*	1
CER	0.0296	0.1235*	0.3339*	1									1.47
SIZE	−0.0002	0.1863*	0.4831*	0.5159*	1								3.16
CAP	0.3587*	0.2317*	−0.1762*	−0.3819*	−0.6626*	1							2.98
CIR	−0.4437	−0.6549*	−0.6766*	−0.2153*	−0.4074*	−0.0228	1						1.85
LDR	0.2333*	0.2254*	0.1876*	0.0461	0.0478	0.2513*	−0.2633	1					1.38
AQ	0.5932*	0.2325*	0.1867*	0.0453	0.1671*	0.1655*	−0.4995*	−0.0476	1				1.61
HHI	−0.0635	0.0131	0.1774*	0.3242*	0.2493*	−0.3282*	−0.1322*	0.0561	0.1096*	1			4.03
GDP	−0.0736	0.0883	0.2527*	0.3545*	0.2815*	−0.3345*	−0.1735*	0.0951	0.0776	0.0776	1		4.39
INF	0.0961	0.0877	−0.0463	−0.2252*	−0.1816*	0.2727*	0.0714	0.0389	−0.1069	−0.7526*	−0.7626*	1	2.76
Mean VIF													2.63

Table 7. Autocorrelation test results

Variable	NIM	ROA	ROE
F	36.525	41.144	104.989
Prob	0.000	0.000	0.000

Table 8. Heteroscedasticity test results

Estimation method	Type of inspection	NIM		ROA		ROE
		Chi^2	Prob	Chi^2	Prob	Chi^2	Prob
Pooled OLS	Breusch-Pagan	42.14	0.000	25.10	0.000	18.56	0.000
FEM	Wald	1465.13	0.000	720.38	0.000	7941.06	0.000
REM	Breusch and Pagan Lagrangian	251.57	0.000	189.25	0.000	169.57	0.000

Table 9. Estimation results of the impacts of CER on FP

	NIM	ROA	ROE
CER	0.0059*(1.80)	0.0007(0.32)	0.0922***(4.26)
SIZE	−0.0040***(−3.08)	0.0002(0.17)	−0.0124(−0.95)
CAP	−0.0299**(−2.10)	0.0098(1.15)	−0.2865***(−2.82)
CIR	−0.0167***(−2.79)	−0.0119***(−4.05)	−0.1649***(−5.74)
LDR	−0.0229***(−2.87)	−0.0058**(−2.57)	0.0275(0.48)
AQ	0.1204*(1.74)	−0.0605(−1.69)	−0.5376**(−2.49)
HHI	−0.0614(−0.35)	0.0939*(1.86)	0.4142(0.52)
GDP	0.2703**(2.37)	0.1009**(2.47)	−0.7222(−0.95)
INF	−0.0487(−1.12)	0.0449***(5.02)	0.3286**(2.08)
L.NIM	1.0278***(16.52)
L.ROA		0.8376***(10.26)
L.ROE			0.7607***(6.43)
_cons	0.0301*(1.90)	−0.0046(−0.75)	0.2070**(2.44)
N	203	203	203
Instruments	25	26	25
Groups	29	29	29
F test	0.000	0.000	0.000
AR(2) test	0.890	0.542	0.377
Sargan test	0.985	0.218	0.452
Hansen test	0.598	0.285	0.673

Note: T statistics in parentheses; *, p-value < 0.1; **, p-value < 0.05; ***, p-value <0.01.

Table 10. Estimation results of the effect of CER on FP when considering the moderating effect of legal regulations

	NIM	ROA	ROE
CER	−0.0050(−0.63)	−0.0003(−0.04)	0.0989***(2.78)
DLB	0.0363***(2.82)	−0.0023(−0.29)	0.0514(0.86)
CERxDLB	0.0087(0.74)	−0.0101(−1.13)	−0.1534**(−2.58)
SIZE	0.0084*(1.94)	0.0060*(1.99)	−0.0713*(−2.01)
CAP	0.0536(1.20)	−0.0274(−0.93)	−0.8210***(−2.91)
CIR	−0.0035(−0.24)	−0.0317***(−3.45)	−0.1745**(−2.14)
LDR	0.0190*(1.99)	−0.0069(−0.90)	0.0043(0.05)
AQ	0.0916(0.42)	−0.4255***(−3.20)	−0.3973(−0.35)
HHI	0.1285(1.13)	−0.0725(−0.66)	1.2944(1.46)
GDP	−0.0217(−0.17)	−0.0265(−0.36)	2.1865**(2.45)
INF	−0.1071**(−2.74)	0.0100(0.47)	0.7549***(3.11)
L.NIM	0.7473***(5.86)
L.ROA		0.5451***(5.36)
L.ROE			0.7235***(7.08)
_cons	−0.0627*(−1.77)	0.0025(0.14)	0.2750(1.23)
N	203	203	203
Instruments	29	29	29
Groups	29	29	29
F test	0.000	0.000	0.000
AR(2) test	0.459	0.831	0.317
Sargan test	0.590	0.430	0.271
Hansen test	0.412	0.783	0.344

Note: T statistics in parentheses; *, p-value < 0.1; **, p-value < 0.05; ***, p-value <0.01.

Table 11. Estimation results of ownership structures on the impact of CER on FP

	NIM	ROA	ROE
CER	0.0121** (2.38)	−0.0027 (−0.57)	0.1497*** (4.75)
DSOB	0.0060 (0.54)	−0.0072 (−0.55)	0.0730 (0.44)
CERxDSOB	−0.0190*** (−3.31)	−0.0074 (−0.52)	−0.0825 (−0.73)
SIZE	−0.0068* (−1.73)	0.0051** (2.24)	0.0619 (1.29)
CAP	−0.05407** (−2.26)	0.0417 (1.57)	−0.6343** (−2.60)
CIR	−0.0376** (−2.51)	−0.0100 (−0.55)	−0.1555 (−1.70)
LDR	−0.0103 (−0.97)	0.0029 (0.28)	−0.1910* (−1.82)
AQ	0.1402 (0.66)	−0.3560* (−2.01)	−1.3173 (−0.89)
HHI	0.1521 (0.85)	0.1016 (0.95)	−1.1190 (−1.14)
GDP	0.1229 (0.63)	−0.0174 (−0.33)	−1.1217 (−1.00)
INF	−0.0694 (−1.38)	0.0426*** (4.43)	−0.0161 (−0.08)
L.NIM	0.9658*** (12.76)
L.ROA		0.6890*** (6.17)
L.ROE			0.7272*** (4.34)
_cons	0.0529(1.62)	−0.03073 (−1.35)	0.1429 (0.49)
N	203	203	203
Instruments	27	25	29
Groups	29	29	29
F test	0.000	0.000	0.000
AR(2) test	0.784	0.745	0.506
Sargan test	0.933	0.355	0.338
Hansen test	0.784	0.725	0.639

Note: T statistics in parentheses; *, p-value < 0.1; **, p-value < 0.05; ***, p-value <0.01.