Corporate Social Responsibility, Board of Directors’ Affect Financial Performance: Evidence in Vietnam

ABSTRACT Purpose: The study aims to explore corporate social responsibility and corporate governance issues such as the board of directors’ characteristics that affect the financial performance of the manufacturing listed companies on the Ho Chi Minh Stock Exchange in Vietnam.   Theoretical framework: The study is based on the agency theory, stakeholder theory and the fundamental corporate social responsibility to clarify its role and the importance of information disclosure to interested parties when making economic decisions.   Methodology: Using pooled Ordinary least squares causes biased results because of autocorrelation and heteroscedasticity, thus the authors conduct Feasible Generalized Least Squares to increase the reliability of findings.   Findings: The research results show that there are four statistically significant factors that affect financial performance: corporate social responsibility, board gender diversity, ownership concentration, and government ownership.   Research, Practical & Social implications: The obtained results highlight the direct relationship between corporate social responisibility and financial performance, implying that these listed companies can improve their firm value based on the mentioned factors.   Originality/value: by examing the significant relationship between CSR and performance, the author emphasizes the role of managers in disclosing information relevant to their responsibilies to the environment and community. The problem is still a limited concern by corporates in the emerging market as Vietnam