Corporate social responsibility by listed commercial banks in Vietnam: practice and financial performance

Abstract

This study examines the impacts of financial performance (FP) on corporate social responsibility (CSR). The article investigates whether FP, as measured by return on assets (ROA) and net interest margin (NIM), influences the likelihood of CSR disclosure, drawing on stakeholder theory and legitimacy theory. The analysis employs binary logistic regression models and an unbalanced panel dataset comprising 26 listed banks between 2014 and 2024. If the bank discloses its CSR practices in its annual or sustainability report, the code for CSR disclosure is 1; otherwise, it is 0. The results show that, while NIM shows a negative relationship, ROA significantly improves CSR. Furthermore, there is a positive correlation between bank size (TA), equity to asset (EA), and CSR; a negative relationship of loan to deposit ratio (LDR) with CSR, and no significant statistical correlation was observed between debt to equity (DTE) and CSR. The study adds to the body of knowledge on CSR in developing nations and offers recommendations for sustainability and bank governance.