The influence of corporate social responsibility disclosure on trade credit: A study of Vietnamese listed firms in the HOSE


Authors

  • Nguyen Van Ha Foreign Trade University
DOI: https://doi.org/10.57110/vnu-jeb.v4i3.338

Keywords:

Corporate social responsibility, trade credit, HOSE, Vietnam

Abstract

This study examines the influence of corporate social responsibility disclosure on trade credit of firms listed on the HOSE. Data on corporate social responsibility disclosure are manually obtained from annual reports over the period 2010 - 2020. And corporate trade credit and other financial data are collected from Fiinpro. Analyzing a dataset of 2,253 observations, the multivariate regression analysis shows that firms with higher levels of corporate social responsibility disclosure are less likely to use trade credit. This trend may stem from the relative higher cost associated with trade credit financing compared to alternative financing options. This result is qualitatively unchanged in robustness checks, including endogeneity controls. Moreover, the inverse relationship between corporate social responsibility and trade credit is more pronounced among smaller firms. This finding indicates that better corporate social responsibility disclosure enables smaller firms to be less dependent on trade credit.

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25-06-2024

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Nguyen Van Ha. (2024). The influence of corporate social responsibility disclosure on trade credit: A study of Vietnamese listed firms in the HOSE. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(3), 11. https://doi.org/10.57110/vnu-jeb.v4i3.338

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