THE MODERATING ROLE OF FIRM SIZE AND FIRM AGE IN THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND FUTURE FIRM PERFORMANCE: EMPIRICAL EVIDENCE FROM VIETNAM Vai trò của quy mô và tuổi thọ của doanh nghiệp tới mối quan hệ giữa báo cáo tác động bền vững và hiệu quả hoạt động của doanh nghiệp: Bằng chứng thực nghiệm từ các công ty niêm yết tại Việt Nam

Abstract

Empirical research shows conflicting results about the association between corporate social responsibility initiatives and firm performance. Our study aims to solve the unanswered question in environmental accounting concerning the degree of alignment between corporate environmental disclosures and financial firm performance by introducing two mediating variables (i.e., firm size and firm age) influencing the relationship between subsequent firm performance and corporate social responsibility disclosures. Understanding moderating variables (i.e., firm age, and firm size) can help researchers identify the context where corporate social responsibility disclosures negatively affect firm performance. By using the sample of all non-financial listed firms on the Vietnam Stock Exchange for the period 2014 to 2022, we find a negative relation between firms disclosing corporate social responsibility and their long-term performance (measured with adjusted industry-size return on asset as well as Tobin’s Q for small-sized firms or young firms but large-sized firms or old firms do not. The findings of this paper are consistent with the supply and demand theory of the firm, as proposed by McWilliams and Siegel in 2001, which indicates that smaller-sized and younger firms engaging in corporate social responsibility do not enhance a company's financial performance.