CAN THO UNIVERSITY
SCHOOL OF ECONOMICS
NGUYEN THI KIEU OANH
CORPORATE SOCIAL RESPONSIBILITY (CSR) AND THE
BUSINESS PERFORMANCE OF VIETNAMESE EXPORT
ENTERPRISES
BACHELOR THESIS
High-Quality Program
Major: International Business
Major code: 7340120C
Can Tho City, Dec/2022
CAN THO UNIVERSITY
SCHOOL OF ECONOMICS
NGUYEN THI KIEU OANH
STUDENT NUMBER: B1810726
CORPORATE SOCIAL RESPONSIBILITY (CSR) AND THE
BUSINESS PERFORMANCE OF VIETNAMESE EXPORT
ENTERPRISES
SUPERVISOR
Associate Professor. Phan Dinh Khoi
Can Tho, Dec/2022
i
ACKNOWLEDGEMENT
First of all, I would like to express my gratitude to my supervisor, Assoc. Prof.
Phan Dinh Khoi, who guided and provided me with detailed feedback for my
thesis. I also want to send my sincerest thanks to the lecturers of the School of
Economics, as well as of Can Tho University, for teaching me valuable
knowledge for the past 4 years. Next, I would like to thank my academic
supervisor, Assoc. Prof. Phan Anh Tu for supporting me in every matter, from
study to extra-curricular activities.
I am also grateful to my classmates, SEC members, and especially my dear
teammates - TLC, for being a big part of my university story. Additionally,
words cannot express my gratitude to my family, especially my parents for
loving me and encouraging me to strive every single day. Con yêu ba mẹ!
Due to my limited knowledge and lack of practical experience, the thesis will
inevitably contain shortcomings. I hope to receive teachers’ comments and
suggestions to improve my thesis. Sincerely thank you!
Can Tho, December
, 2022
NGUYEN THI KIEU OANH
ii
DECLARATION OF INDEPENDENCE
I declare that:
• I have complied with the thesis examination procedure at Can Tho
University, School of Economics.
• This thesis is entirely my own original work, except where I have
acknowledged use of source material [such as books, journal articles, other
published material, the Internet, and the work of other student/s or another
person/s].
• This thesis has not been submitted for examination at Can Tho University
or elsewhere.
• The university and/or the examiners may communicate a copy of this
thesis item to a plagiarism checking service (which may then retain a copy of
the thesis on its database for the purpose of future plagiarism checking).
FULL NAME
SIGNATURE
NGUYEN THI KIEU OANH
iii
DATE (
/
/
)
ABSTRACT
This study aims to clarify the relationship between corporate social
responsibility and company performance. Based on the stakeholder theory, this
study uses cross sectional data from 108 Vietnamese export businesses listed on
the Vietnam Stock Exchange to empirically examine whether corporate social
responsibility can significantly impact business performance. In the research
process, correlation analysis and multiple regression analysis are used. The
regression result indicates that some factors expressing corporate social
responsibility, such as earnings per share, and the prestigious exporting business
title, are positively correlated with business performance variables. While
others, such as the salary-to-income ratio and company's community-oriented
activities, are not. Based on the analysis results, the topic implied adding
evidence to gradually enhance the perspective of social responsibility in relation
to the enterprise's benefits.
Keywords: Corporate social responsibility, business performance, export
enterprises, international trade.
iv
TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION .................................................................... 1
1.1 RESEARCH PROBLEMS .......................................................................... 1
1.2 RESEARCH OBJECTIVES ........................................................................ 2
1.2.1 General objective of the study................................................. 2
1.2.2 Specific objectives of the study............................................... 2
1.3 RESEARCH QUESTION ........................................................................... 2
1.4 SCOPE OF THE STUDY............................................................................ 2
1.4.1 Time scope .............................................................................. 2
1.4.2 Space scope ............................................................................. 3
1.4.3 Research subject ...................................................................... 3
1.5 STRUCTURE OF THE THESIS ................................................................ 3
CHAPTER 2 LITERATURE REVIEW AND THEORETICAL
BACKGROUNDS .......................................................................... 5
2.1 LITERATURE REVIEW ............................................................................ 5
2.1.1 International studies ................................................................ 5
2.1.2 National studies ....................................................................... 6
2.2 THEORETICAL BACKGROUNDS ......................................................... 7
2.2.1 The concept of Corporate social responsibility (CSR) ........... 7
2.2.2 The concept of business performance ..................................... 9
2.2.3 Hypothesis development and conceptual model ................... 10
v
CHAPTER 3 METHODOLOGY................................................................. 24
3.1 DATA COLLECTION METHOD ..................................................... 24
3.2 MEASUREMENT OF VARIABLES ................................................. 24
3.2.1 Independent variable ............................................................. 24
3.2.2 Control variables ................................................................... 26
3.2.3 Dependent variable................................................................ 26
3.3 DATA ANALYSIS ............................................................................. 20
3.3.1 Descriptive statistics.............................................................. 20
3.3.2 Diagnostic test ....................................................................... 20
3.3.3 Correlation test ...................................................................... 22
3.3.4 VIF test .................................................................................. 22
3.3.5 Heteroskedasticity test .......................................................... 23
CHAPTER 4 ANALYSIS AND RESULTS................................................. 24
4.1 OVERALL STUDY SCOPE .............................................................. 24
4.1.1 Vietnam overview ................................................................. 24
4.1.2 International trade in Vietnam .............................................. 25
4.1.3 Corporate social responsibility practice in Vietnam ............. 28
4.2 CURRENT SITUATION OF CORPORATE SOCIAL
RESPONSIBILITY OF VIETNAMESE EXPORT ENTERPRISES ...... 31
4.2.1 Overview of surveyed enterprises ......................................... 31
4.2.2 Descriptive statistics.............................................................. 32
vi
4.3 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY
(CSR) ON THE BUSINESS PERFORMANCE OF VIETNAMESE
EXPORT ENTERPRISES ........................................................................ 41
4.3.1 Examining measurement instrument ..................................... 41
4.3.2. Linear regression results ...................................................... 43
CHAPTER 5 CONCLUSION, IMPLICATIONS AND LIMITATIONS 49
5.1 CONCLUSION ......................................................................................... 49
5.2 IMPLICATIONS ....................................................................................... 49
5.3 LIMITATIONS AND FUTURE RESEARCH DIRECTION ................... 50
5.3.1 Limitations ............................................................................. 50
5.3.2 Future research direction........................................................ 51
vii
LIST OF FIGURES
Page
Figure 2.1 Stakeholder view of firm .................................................................. 9
Figure 2.2 Proposed conceptual framework .................................................... 13
Figure 4.1 Administrative map of Socialist Republic of Vietnam ................ 244
Figure 4.2 Vietnam’s export structure in 2021 by industry group .................. 27
Figure 4.3 Vietnam’s main export markets in 2021 ........................................ 27
Figure 4.4 Distribution of exporting enterprises’ net revenue......................... 33
Figure 4.5 Distribution of earnings per share .................................................. 35
Figure 4.6 Prestigious businesses by industry in 2021 .................................... 37
Figure 4.7 Percentage of businesses that have initiatives to reduce emissions 39
Figure 4.8 Firm size larger than 1,000 billion VND by industry .................... 41
viii
LIST OF TABLES
Page
Table 3.1 Summary variables measurement method used in the regression
model .............................................................................................. 19
Table 4.1 Surveyed businesses by industry ..................................................... 31
Table 4.2 Descriptive statistics of the variables in the research model ........... 32
Table 4.3 Employee benefits funds ................................................................. 34
Table 4.4 Earnings per share by industry ........................................................ 35
Table 4.5 Liquidity of surveyed businesses..................................................... 36
Table 4.6 Surveyed enterprises in prestigious exporting enterprises list of 2021
by industry ...................................................................................... 37
Table 4.7 Prestigious exporting enterprises ..................................................... 38
Table 4.8 Firm size by industry ....................................................................... 40
Table 4.9 Estimation results of correlation analysis ........................................ 43
Table 4.10 Estimation results of linear regression model ............................... 44
Table 4.11 Overview of hypothesis result ....................................................... 47
ix
LIST OF ABBREVIATIONS
CFP
: Corporate financial performance
CSR
: Corporate social responsibility
EPS
: Earning per share
EU
: European Union
HNX
: Hanoi Stock Exchange
HOSE
: Ho Chi Minh City Stock Exchange
MNCs
: Multinational corporations
OLS
: Ordinary least squares
R&D
: Research and Development
ROA
: Return on assets
ROE
: Return on equity
ROS
: Return on share
UPCOM
: Unlisted Public Company Market
USD
: United States dollar
x
CHAPTER 1
INTRODUCTION
1.1 RESEARCH PROBLEMS
In the new era of development, markets exert greater pressure on
businesses to take seriously their responsibility to protect economic partners'
interests. As a result, companies are gradually altering their strategic vision to
implement corporate social responsibility (CSR). In additon, CSR itself
generates significant interest among managers due to its advantages for
businesses, such as maintaining competitive advantages and advancing
businesses toward sustainable growth (Martos et al., 2022). According to
Friedman (1970), practicing CSR is a way to help businesses maintain and grow
profits. It is considered a successful branding strategy that drives businesses and
their products' values toward the community, environment, and society.
In international trade, multiple studies have demonstrated that CSR
practices result in more outstanding international success than non-CSRoriented firms (Khojastehpour & Saleh, 2019; Laplume et al., 2008). Boehe and
Barin (2010) observed that CSR product distinctiveness positively and
significantly affects exporting volume and value. Similarly, Antonietti and
Marzucchi (2014) demonstrated that investing in green methods can enhance
productivity, which increases the likelihood of exporting to international
markets with stricter environmental regulations. Therefore, to be competitive in
the international context, an increasing number of companies are adopting
differentiation approaches based on CSR as the essential element of this type of
competitive strategy. Vietnam is not an exception. In recent years, Vietnam's
international trade has achieved record numbers due to globalization and the
expansion of bilateral and multilateral trade agreements. Along with these
accomplishments, the growth of international trade calls for Vietnamese
exporting businesses to focus more on practicing CSR to obtain "social license"
to operate in specific markets and, thus, to be viewed as more appealing market
entrants. However, the fact is that most Vietnamese export enterprises have not
taken consideration seriously (Thuy, 2019). Many scholars argue that firms do
not want to implement CSR because they believe CSR will increase their costs
1
and responsibilities, yet the benefits of CSR are not immediately apparent.
Consequently, many Vietnamese businesses do not want to or do not take their
social responsibilities seriously.
Therefore, the study on "Corporate social responsibility (CSR) and the
business performance of Vietnamese export enterprises" is chosen to investige
and analyze CSR factors that impact on business performance of Vietnamese
export enterprises, as well as contribute to the basis of evidence with the
intention to promote enterprises to practice corporate social responsibility.
1.2 RESEARCH OBJECTIVES
1.2.1 General objective of the study
The study's general objective is to review and analyze the impact of
corporate social responsibility on business performance, particularly in the
international trade sector, using a sample of exporting companies listed on the
Vietnamese stock exchange. Hence, it is the foundation to propose managerial
implications for Vietnamese export enterprises to practice corporate social
responsibility.
1.2.2 Specific objectives of the study
Objective 1: To give an overview of corporate social responsibility (CSR)
practice in Vietnam.
Objective 2: To analyze the impact of corporate social responsibility
(CSR) on the business performance of Vietnamese export enterprises.
Objective 3: To propose managerical implications for Vietnamese exports
enterprises in order to pratice corporate social responsibility (CSR).
1.3 RESEARCH QUESTION
How does corporate social responsibility (CSR) affect the business
performance of Vietnamese export enterprises?
1.4 SCOPE OF THE STUDY
1.4.1 Time scope
The thesis studies the influence of factors on corporate social
responsibility of listed export companies in 2021. In which, data is collected the
2
financial reports, annual reports, and other relevant documents released by the
examined companies for the fiscal year 2021.
1.4.2 Space scope
The topic was conducted to examine companies with export activities
listed on the Vietnamese stock exchange in 4 key industries: raw materials,
consumer goods, healthcare, and agriculture.
1.4.3 Research subject
The research subject is corporate social responsibility (CSR) and the
business performance of Vietnamese export enterprises
1.5 STRUCTURE OF THE THESIS
Chapter I: Introduction
The author provides a general overview of the study "Corporate Social
Responsibility (CSR) and the Business Performance of Vietnamese Export
Enterprises" in this chapter, outlining the reason for choosing, the study's
objectives, research questions, and scope of the study.
Chapter II: Literature review and theoretical backgrounds
In this chapter, the previous local and foreign studies are presented,
thereby reviewing the gap in previous studies. forming the basis for building
hypotheses and research model. In addition, the basic concepts related to
corporate social responsibility (CSR) and the Stakeholder theory approach to
CSR are introduced. Finally, the author clarifies the meanings of business
performance and corporate social responsibility in stakeholder view and
proposes a conceptual framework.
Chapter III: Methodology
The author describes the methods employed in chapter 3 as well as the
method of measuring the variables along with the data collection and data
analysis methods used in the research.
3
Chapter IV: Analysis and Results
This chapter illustrates the regression analysis results. The information
about descriptive statistics and regression results are presented. An explanation
of this information will also be provided. The chapter ends with a summary that
shows whether or not the hypotheses are correct.
Chapter V: Conclusion
The conclusions gained from the examination of the data are presented in
the last chapter. Theoretical contributions and practical ramifications are then
discussed, as well as limitations and future research objectives.
4
CHAPTER 2
LITERATURE REVIEW AND THEORETICAL BACKGROUNDS
2.1 LITERATURE REVIEW
2.1.1 International studies
Studies about CSR and business performance have generated the interest
of scholars around the world for a long time. This subject's results vary,
especially when researchers approach the topic using the stakeholders' theory.
Otherwise, there are intriguing studies on the impact of CSR on international
trade.
After decades of research, scholars have presented various perspectives on
the relationship between CSR and business performance. Numerous studies
indicated that CSR is advantageous to businesses. Companies that practice CSR
enjoy a better reputation in people's eyes than those that do not (Jenkins &
Obara, 2006). According to Tsoutsoura (2004), a company's dedication to CSR
boosts staff capacity and lowers its error rates. CSR encourages employees to
work hard and draws talented individuals to the company (Turban & Greening,
1997). As a result, those benefits positively impact the financial performance of
an enterprise (Tsoutsoura, 2004; McWilliams & Siegel, 2000). On the other
hand, scholars who argued there is a negative relation between CSR and
business performance pointed out that CSR may lead to higher costs for
corporations and higher responsibility (Bragdon & Marlin et al., 1972). Based
on the findings of an empirical investigation, Brammer and Millington (2005)
believed that implementing corporate social responsibility would ultimately
increase management costs, impacting financial performance. Makni et al.
(2009) used 179 businesses as a sample to conduct a causality test. The findings
revealed an unclear relationship between corporate social responsibility and
financial performance.
Literature based on stakeholder theory has claimed that CSR activities
contribute to establishing organizations as socially and ecologically responsible
towards their consumers, suppliers, and other stakeholders, enhancing their
market competitiveness. Zhang (2012) presented a study based on the financial
reports of 95 US-listed firms, which showed that CSR for employees has a
5
positive impact on CFP, while CSR for the community brought negative
responses to business performance. Another study of 63 listed Chinese foodprocessing companies revealed that while some forms of CSR, such as social
donation, had a positive link with financial success, others, like CSR for
suppliers and the government, have the opposite effect (Fu & Shen, 2014).
Particularly in international trade, CSR activities are significant as a
strategy for leading enterprises to success worldwide. CSR enables businesses
to boost their reputation and profitability in many markets and appeal to
prospective investors (Kanji, G.K. & Chopra, 2010; Breadsell, 2008). Boehe
and Barin Cruz (2010) observed that CSR initiatives have a favorable and
significant effect on the export production of 252 medium and large-sized
Brazilian exporters. Similarly, Antonietti and Marzucchi (2014) demonstrated
that investing in green methods can enhance productivity, which increases the
likelihood of exporting to international markets with stricter environmental
regulations.
In conclusion, international studies showed different results on the
relationship between CSR and business performance. Most studies agreed that
there is a positive correlation. Especially in international trade, CSR is
considered a successful strategy to increase the reputation and profit of
businesses.
2.1.2 National studies
Not being left behind, Vietnam has also had many studies on the
relationship of CSR and business performance.
Along with the entry and investment of numerous MNCs, the concept of
CSR has been introduced in Vietnam. Since then, Vietnamese managers have
extensively used the term "social responsibility" in their businesses. As a result,
many scholars have focused on researching the relationship between CSR and
corporate performance. Most findings showed that CSR and business
performance have a positive relationship. According to studies conducted
Vietnamese provinces, CSR positively impacts a company's performance. There
is a positive relationship between CSR and a firm's size, which means large
6
corporations prefer to engage in CSR more, and that, as a result, brings back
them more money (Thao & Cuong, 2019; Duyen et al., 2014).
Besides, studies that use the stakeholder theory on the impact of CSR on
business performance conducted several noteworthy findings. According to
Duyen (2019), there is a beneficial correlation between an enterprise's net
revenue and its social responsibility practices. CSR for the company's suppliers,
customers, employees, and environment helps grow the net revenue of
producing companies listed in the Vietnamese stock market. When researching
the effects of CSR on multinational pharmaceutical companies, Thao (2021)
came to the same conclusion. By focusing on stakeholders (employees,
customers, and suppliers), Ho Chi Minh City pharmaceutical companies could
increase employee work motivation and increase company revenue. Studies on
differential industries, such as seafood, beverage, manufacturing, and service,
also agree with previous authors that CSR positively impacts direct and indirect
business performance (Phuong et al., 2019; Khoi & Thanh, 2019; Nguyen et al.,
2021).
However, Vietnamese studies about CSR in the international trade aspect
are limited. The recent increase in international trade agreements calls for
Vietnamese enterprises to focus more on practising CSR to obtain a "social
license" to operate in specific markets. Thus, studying the relationship between
CSR and the business performance of exporting companies is necessary.
2.2 THEORETICAL BACKGROUNDS
2.2.1 The concept of Corporate social responsibility (CSR)
2.2.1.1 Basic definitions of Corporate social responsibility (CSR)
Following Chaffee (2017), the origins of social responsibility for a firm
have appeared for several centuries since ancient Rome. However, it was until
the 1950s that the corporate social responsibility definition took shape. Latapí
Agudelo (2019) stated that Bowen pioneered the concept of social responsibility
in the business context in his book “Social Responsibilities of the
Businessman.” Bowen (1953) defined social responsibility as the obligations of
business people to pursue their policies, to make their decisions, or to follow
their lines of action which bring value to society. In summary, ideas for social
7
responsibility in the 1950s can be counted in three core concepts: Managers are
public trustees, Balancing conflicting requests for corporate resources, and
Accepting philanthropy as a sign of business support (Frederick, 2006).
Later, in the 1960s, CSR definitions became more flexible and simplistic
(Latapí Agudelo, 2019). The relationship between corporation management,
social responsibility, and business goals was mentioned (Caroll, 2008). In more
detail, McGuire (1963) stated that corporations, when practicing CSR, should
not only do economic and legal obligations but also respond to specific societal
responsibilities that extend beyond these obligations. Corporation responsibility
practicing toward the society in this period embraced such topics as
philanthropy, employees, customers, and stockholders (Heald, 1970).
Until the 1970s, corporate social responsibility became increasingly
popular (Latapí Agudelo, 2019). At this time, one notable definition of CSR was
introduced by Committee for Economic Development (CED) in its publication.
CED defined CSR in terms of 3 circles: responsibility for economic functions,
social values, and responsibility to actively improve the social environment.
2.2.1.2 Stakeholder theory approach to CSR
There are ideas regarding corporate social responsibility and business
performance that have caused some confusion for managers when trying to
apply the concepts to realistic management (Carroll, 1999). In which the two
main famous theories are the "Pyramid of Corporate Social Responsibility" by
Carroll (1991) and the Stakeholder theory by Freeman (1994). While the
"Pyramid of Corporate Social Responsibility” mostly focuses on the obligations
of a company, the stakeholder theory proposes specific research objectives for
CSR studies.
Freeman came up with the term "stakeholder" in 1984 for business
management addresses morals and values in an organization According to his
definition, a company creates a network of many actors (stakeholders) who
influence or are influenced by its management decisions. Therefore, companies
must acknowledge the interests of these stakeholders, their network of
relationships and their reciprocal expectations of behavior, facilitating these
stakeholders in making business decision (Evan & Freeman, 1988). From this
8
theoretical perspective, CSR practice is a combination of dealing with different
stakeholders base on the company's commitment level. In more detail, Savitz &
Weber (2006) divided a firm’s stakeholders into two categories internal and
external. While internal stakeholders are comparable to employees, owners, and
managers, external stakeholders include suppliers, customers, communities,
investors, government agencies, nonprofit groups, regulators, the media, etc.
Figure 2.1 Stakeholder view of firm
Source: Freeman, 1984
Freeman and Dmytriyev (2017) suggested that the stakeholder theory and
CSR as distinct concepts with some overlap. Both stakeholder theory and
corporate social responsibility emphasize the need of incorporating societal
interests into business operations. This is the reason why stakeholder theory
should be applied to the relationship between CSR and corporate performance.
2.2.2 The concept of business performance
Business performance is the achievements of a company in terms of its
financial and operational performance (Venkatraman & Ramanujam, 1986).
Prior studies evaluating the effects of CSR on organizational success have
primarily used financial performance as their dependent variable (Griffin &
Mahon, 1997; Orlitzky, Schmidt, and Rynes, 2003). Duyên (2019) suggested
that net revenue presents the performance of enterprises that engage in CSR.
9
Net revenue reflects the overall money a business earns, indicating that the
higher the net revenue, the more influential the business.
Scholars' perspectives bring up numerous new areas for research into the
effects of CSR on performance, particularly the influence of intangible firm
assets such as brand and reputation. For example, Antunovich and Laster (2000)
found that corporations with the charitable fund are generally more admired by
society. Additionally, the stocks of the most admired companies generate
positive abnormal returns of 3.2% the following year and 8.2% the year after
three years.
In summary, business performance of companies have CSR oriented
activities can be considered tangible (financial) and intangible (reputation)
assets. The variety of measurement techniques allows researchers to select one
or more suitable indicators for their study (Griffin & Mahon,1997).
2.2.3 Hypothesis development and conceptual model
2.2.3.1 Hypothesis development
Employee
Employees are a firm's most critical stakeholders as they are primary
human resources. Numerous empirical research and theories contend that a
company's staff management practices impact business performance
(McWilliams & Siegel, 2001; Zhang, 2012; Maignan & Ferrell, 2001).
According to Maignan and Ferrell (2001), CSR practice positively correlates
with employee commitment in France. Later, Li & Yu (2015) endorsed that
employees who work in socially responsible companies have higher
productivity and commitment than their peers in less socially responsible
companies. Additionally, Turban & Greening (1997) hypothesized that CSR
practices aid businesses in improving their reputation and employability. As a
result, candidates for jobs with high qualifications are more likely to apply to
socially responsible firms than firms not exhibiting CSR (Albinger & Freeman,
2000). Better CSR for an employee requires more expenses, which harms profit,
but on the other hand, businesses benefit from higher productivity, staff loyalty,
and a better reputation (Zhang, 2012; Li & Yu, 2015; Fu & Shen, 2014).
10
H1: There is a positive relationship between CSR for employees and
business performance.
Shareholder
Shareholders are the significant stakeholder in most economics theories
since they influence and are influenced by the performance of the business. King
& McDonnell (2012) suggested that businesses must have a clear understanding
and care for shareholders’ financial benefits as they provide the principal capital
for the firms. Scholars agreed that CSR on shareholders and business
performance has a positive correlation. Companies that care for shareholders’
income, usually get higher revenue than those are not (Duyên, 2019). On the
other hand, shareholders tend to sever ties with the firm if they feel they are not
being treated fairly (Zhang, 2012).
H2: There is a positive relationship between CSR for shareholders and
business performance.
Supplier
Suppliers are identified as the stakeholders who hold business contracts
with the firm and face the most financial risks. There are not many studies
suggested considering suppliers as one CSR dimension due to the lack of longterm connection between this group and the enterprise. However, Freeman
(1994) suggested that companies should treat their suppliers as valued members
rather than as a source of material as they can help corporations by responding
kindly when bad things happen to the businesses, such as in lack of material
period or financial crisis period.
H3: There is a positive relationship between CSR for suppliers and
business performance.
Customer
Customers are who purchase products or services of a company and bring
the primary revenue to the business. Numerous studies have discovered a
relationship between CSR for customers and business performance (Zhang,
2012). Ta & Bui (2018) suggested that CSR for customers encompasses a wide
range of factors, including quality assurance and investment, transparent
information, information security, etc. According to Freeman (1994),
11
businesses that invest enough R&D expenses usually get higher income cause
customers are willing to pay more for the innovation and development of a
product. On the other hand, corporations are poor in CSR practices for
customers tend to lose due to low sales (Rashid & Ibrahim, 2002). Additionally,
scholars contend that strong CSR for customers is advantageous for business’s
intangible assets like a company's reputation, brand value, and customer loyalty
that are indirectly tied to business performance.
H4: There is a positive relationship between CSR for customers and
business performance.
Environment
Since the development of the first concept of CSR, the environment has
been defined as the primary ethical aspect of CSR. Numerous managers in large
companies agreed that dealing with environmental issues is crucial to their
business (Newman & Breeden, 1992). According to Guzman (2016), businesses
are encouraged to engage in corporate social responsibility (CSR) for the
environment in the city, as this practice is highly valued by society as a whole.
Moreover, it generates not only the reputation of a socially responsible
corporation but also a higher degree of economic performance. The Roper 1990
found that consumers are prepared to spend an additional 6.6% on ecologically
friendly products. Some previous research indicated that correctly crafted
environmental rules could drive businesses to innovate and generate new
markets (Hart, 1996; Porter & Van der Linde, 1995).
H5: There is a positive relationship between CSR for the environment and
business performance.
Community
The community in CSR can be considered as businesses' activities to
society such as giving and charity. Several works done on CSR used community
as one of the crucial dimensions (Brammer et al., 2006; Fiori et al., 2007). Many
scholars agreed that CSR for community and business performance has a
positive relationship (Clarkson, 1995; Waddock & Graves, 1997). According to
Brammer (2006) visible funding of or involvement in community projects may
also strengthen brand images, engendering a sense of loyalty among consumers.
In Nigeria for every naira spent on community giving, ROE increases on
12
average by 30kobo (Uadiale and Fagbemi, 2012). The same result occurs in the
airline industry in Central and Eastern Europe EU, for each additional unit of
money spent on the community, ROA increases averagely by 36 currency units
(Brammer, 2006).
H6: There is a positive relationship between CSR for the community and
business performance.
Control variables
Due to their fair correlations, control variables should be added to the
research model, particularly in CSR and company performance studies.
Previous research has demonstrated that size and risk impact CSR and business
performance. According to Burke et al. (1986), when companies mature and
grow, they attract greater attention from the external environment, thus leading
to a good reputation and generating good revenue. On the other hand, the risk
presents uncertainty on many sides, such as equity or management inside the
business, which is directly harmful to business performance. Due to this close
relationship, this study will use the company’s size and risk as control variables.
2.2.3.2 Conceptual framework
Applying the research model of the stakeholder theory approach to CSR,
along with the literature review, the author proposes the following conceptual
framework to analyze the impact of corporate social responsibility (CSR) on the
business performance of Vietnamese export enterprises.
The conceptual framework includes 01 dependent variable (business
performance) and 06 independent variables that present CSR practices on
employees, shareholders, suppliers, customers, environment, and communities.
In addition, 02 control variables (size and risk) are added to strengthen the
result.
Can You Microwave Cold Glass? Do It In
The Right Way 2023
Meta: Can you microwave cold glass? Most glass is generally microwave-safe, but
how about cold glass? If you are wondering, let's check it out in this article!
13
Intro: Can you microwave cold glass? Glass, of course, is a perfect material for
microwave usage. However, putting cold glass in the microwave is a controversial
topic. Unexpected kitchen accidents can occur if you do not know the features of your
glassware.
Caption: You definitely want to avoid having a microwave explosion due to putting the
wrong glass in it.
Therefore, take advantage of this article if you want to avoid blowing up your kitchen
by using the wrong glassware for the microwave. Below, I will tell you every detail
about cold glass and the right way to use glassware in the microwave. Let’s scroll
down to learn now!
Glassware In Your Kitchen
Glass is an inorganic solid material used for numerous daily applications. Types
of glass are a variety. In most kitchens, there are three main types of glassware.
Knowing each type's characteristics thus helps you choose the most suitable for your
cooking needs.
Caption: Glass is the most common material in the kitchen
Table: Three main types of glassware in most kitchens
Characteristics
Soda-lime
Heat–resistant glass
Opal glass
Chemical
compositions
The most common
form of glass mainly
contains silicon
dioxide [1]
The glass is made from
borosilicate (silicon
dioxide and boron
trioxide) [2]
The same chemical
compositions with heatresistant glass but
adding opacifiers to the
melt
Heat resistance
Low
High
High
Application
•
•
Drinking glass
Common
tableware
•
•
Baking containers
Common
kitchenware used
in the oven
•
•
Bowls and Plates
It can be used in
oven
Soda-lime Glass
Soda-lime glass is the most common glass which is used in most daily applications.
The drinking glass is the best illustration of soda-lime glass.
Soda-lime glass is popular because it is suitable for making various tableware at
a reasonable price. However, it isn't a strong type of class.
14
Caption: Drinking glass is mainly made from soda-lime glass.
Heat–resistant Glass
The composition of heat-resistant glass is mostly borosilicate. It is more durable and
resistant to thermal shock than typical glass. Therefore, heat-resistant glass is
usually used in industrial constructions and cookware is used in ovens.
Usually, cookware made from heat-resistant glass is thicker than soda-lime glass.
Caption: The baked containers are mostly original from heat-resistant glass.
Opal Glass
Opal glass is well-recognized as white glass. Opal glass has the same composition
as heat-resistant glass. However, manufacturers will add some extra ingredients in
the melting process for white color.
Opal glass is safe in the oven but relatively more expensive than heat-resistant
glass.
Caption: Opal glass makes tableware more elegant with white color.
Glass - A Perfect Food Container
When you come to kitchenware, especially for heating purposes, glassware will stand
out due to its advantages. Below are some highlight features of glass.
Caption: Glass is a perfect container for storing and cooking food
Durable
Glass is very durable. You can use it in both hot and cold environments. Most glass
cookware is designed to withstand higher temperatures than plastics or metal
materials. Therefore it can help with the cooking process.
Toxic-free
Have you ever tried the weird taste of food after it's been in a plastic container for a
while? That is the sign of toxic release that changes the nature of food and may harm
your health.
Thanks to the glass's non-reactive surface [3], it becomes a perfect container for
food that ensures non-toxic transfer. Glass also does not absorb smell and
flavours, so food stored in glass can stay fresh and fully nutritious for longer.
Easy-To-Clean
Glass is an easy-to-clean material. For cleaning dirty glass, you just need to soak it
with warm water and dish soap. Waiting for a little bit before scrubbing clean.
15
Watch this video: It is very easy to clean the bakeware glass.
Eco-friendly
Glass is made from a natural material, and its quality and durability do not change
after years so you can use it again and again. Besides, Glass does not release
harmful chemicals into the environment; you can recycle it even if it breaks.
Clear Material
Another benefit of glass is its clear cooking surface. Therefore you can look through
the glassware and control your cooking process.
Other cookware allows you to follow the cooking process from the top, which is tricky
if you do something with layers. So, yes, glassware is great.
Caption: Cooking is easy to control when using a glass pot.
A Disadvantage Of Glassware
Even with many advantages, glassware has one weakness: temperature sensitivity.
Most microwave explosions are due to temperature differences between glass
containers and microwave heat.
Caption: Broken glassware is a common accident in the kitchen
Can You Microwave Glass?
The most frequently asked question is whether it is safe to microwave a glass. For
the correct answer, first, you must know how the glass works in the microwave.
About Microwaving Glass In General
You can microwave glass, which is this material's perfect characteristic. However,
it would help if you remembered that only kitchenware with a "microwave safe"
label is safe. Because some glass, such as soda-lime, is not designed for microwave
use. Soda lime glassware can be shattered if the oven temperature exceeds its
permissible limit.
Caption: Putting glassware in the microwave for reheating food happens daily
16
What Happens When Putting Unsuitable Glass Dinnerware In
The Microwave?
So what happens when putting the wrong glass of dinnerware in the microwave? It
negatively impacts not only your glass items but also your microwave. Broken oven
glass, electric shock, or worst, fire can happen.
Caption: Fire can happen if you put a glass without a microwave-safe label in the oven
How About Microwave Cold Glass?
Putting a cold glass in the microwave for heating up is controversial. Even if you can
set the most glass in the hot microwave, cold glass is not an option.
As mentioned, glass is a temperature-sensitive material. Therefore the temperature
differences between cold glass and microwave heat can be the reason for most
kitchen accidents.
Caption: Keeping the cold glass away from the microwave is a good idea
Although putting a cold glass in the microwave is not an option, the fact is that you
prefer to put most of your glass container food in the fridge to store. Therefore take
note of the following steps if you want to reheat a glass container from the
refrigerator.
Step 1: Let The Glass Chill
This is a big no for putting an icy glass in the microwave. However, you can do it with
a chilled glass. Before placing the glass in the oven, you should take time for your
glassware to settle the temperature. Room temperature is highly recommended!
Step 2: Wipe Off Stagnant Water
After chilling for a while, there may be stagnant water around your glassware.
Therefore, ensure to wipe off the glass until dry because moisture on the surface
can lead to uneven heat and break.
Caption: A glass without stagnant water is ready for microwaving
Step 3 Use Low Setting
Finally, start your heating-up process with a low setting in the microwave. This step
ensures your glassware adapts to new temperatures and does not break due to high
heat changes.
Watch this video: All you must know to set low-temperature for your microwave
17
Types of Glass Can Be Used In The Oven
The glass world varies, but not all are made for particular microwave usage. You
must ensure that your glassware is oven-safe to put in the pre-heated microwave.
Following are my two highly recommended types of glass suitable for
microwaves.
Borosilicate Glass
Borosilicate glass's main ingredient is boron trioxide which allows it to adapt to a
wide range of temperatures. Therefore borosilicate glassware can easily go from
freeze to the oven without any concerns of breaking.
Borosilicate glass can withstand up to 330 degrees F. One famous glassware brand
- Pyrex, which uses borosilicate glass to produce its product, announced that Pyrex
glassware could withstand up to 425 degrees F.
Caption: Pyrex glassware is a well-known brand using borosilicate glass in their
products
Tempered Glass
Tempered glass can be known as the safest glass for microwaves. It is also the most
synthetic material for glassware in the United States.
Tempered glass can withstand up to 470 degrees F. Even if tempered glassware
does break, it will shatter into small pieces that can not harm you.
Which Type Of Glass Should Not Be Microwaved?
Contrary to glasses recommended for microwaves, there are some never-be-used
in microwave types. There is more than one reason not to use these glasses rather
than the poor heat resistance.
Colored Glass
Glass can change color due to the temperature when producing it. However, there
are other ways to create colored glass, such as using dyes. Therefore, placing a
colored glass dish in the microwave is not a good choice since it can release harmful
dyes and affects your food.
Caption: Colored glass is beautiful, but it is not a good choice for microwave
Annealed Glass
Unlike tempered glass, which will shatter into small pieces when it breaks, annealed
glass is more dangerous. Once the accident happens, annealed glass breaks into
large, sharp pieces that cause injuries.
18
Although there is not much kitchenware made from this glass, there are
exceptions. Therefore, I hope you never put annealed glass in the microwave to
avoid unexpected things happening.
Metallic Trims Glass
You should never put glassware that has metal on it in the microwave since metal
can cause sparkle and fire in the oven.
Besides, metal has a higher expansion coefficient than glass. Therefore, this
thermal expansion variation can cause broke in cooking items.
Caption: Glass should go alone in the microwave
Check If It Is Microwave-Safe Glass
Besides checking the types of glass, there are two other ways to tell you if your
glassware is microwave-safe glass.
Look For Suitable Signs And Symbols
Usually, manufacturers put one or some symbols in the product to tell you if this
glassware is suitable for microwave safety. So, your work is just looking for this
sign/symbol, which may be right under the bottom of the glass dish.
Caption: Look for signs to ensure your glassware is microwave-Safe
Guide For Microwave-Safe Glass Test
In case you do not know the type of glass of your dish and can not find a symbol for
microwave-safe products. Then, apply this microwave-safe glass test to figure it
out. Please be aware this test applies to glass dishes/bowls only.
Watch this video: Useful guide to test if your dish is microwavable
Step 1 Prepare A Cup Of Water
Use a microwave-safe cup and fill it with water. Three-quarters of the cup is ideal.
Please be aware that you must have a microwave-safe cup. Otherwise, the test
won't work.
Caption: Filling three-quarters of the microwave-safe cup with water
Step 2 Microwaving Your Tested Dish And Cup
Place the tested dish and the cup together in the microwave and start at a high
temperature. If your plate is too big compared to the cup, you can place the cup on
top and microwave them together.
Caption: If your plate is too big compared to the cup, you can place the cup on top
19
Step 3 Touch Test
After a minute, you can turn off the microwave and start a touch test. Remember to
use oven mitts to take out the cup safely. Then use your hand and feel.
•
The unsafe dish: The dish is warm, and the water is cool.
•
The microwave-safe dish: The dish is cool, and the water is warm. That
means your dish does not absorb the heat from the oven and is safe for use.
Tips To Prevent Glass Breaking In The Oven
I have told you all about the glass and each type's features. So, now it is time for some
important tips. Please keep these notes in mind to use the microwave safely for
heating up your food in a glass container.
Caption: Reading all caution and provided directions for using glassware is essential.
•
Reading all cautions and using tips from manufacturers. Reading
carefully and following instructed directions will help you avoid accidents.
•
Using specialization items for microwaves. Check for a sign to show your
glassware is made for microwaves will help you avoid mess and endangering
people.
•
Preheating your microwave before placing glass in it. Turning your
microwave to 350 degrees F before placing your glassware in will help to warm
it easily.
•
Remember to check if your glassware doesn't have any shatter. You can
use water to check the sign of shatter in the glassware. Don’t put a glass with
a shatter on it in the microwave cause it can be completely ruined.
•
Don't make any thermal shock. The rule is to never immediately place glass
from the freezer into the oven and vice versa. The fast temperature chances
are always dangerous to most glassware.
Watch this video: If your glassware has a crack, it will break when meeting high
temperatures.
FAQs
1. Will glass melt when microwaving?
Yes, microwaves can melt glass but at a very high temperature. Usually, glass
melts at 2700 to 3100 degrees F, mainly used in art, not for food cooking
purposes.
2.
Can I use the glass from the oven immediately?
Yes, you can. But remember to wear the oven mitts to protect yourself from
burning because glass from the oven has a very high temperature.
3.
Is it possible to microwave a fully frozen mason jar?
20
You may see many beautiful foods in mason jar pictures on Pinterest, but I do
not recommend you follow to microwave a fully frozen mason jar. A fully frozen
mason jar is the same as cold glass, so it will be shattered if you microwave
it.
4.
How long should I put the glass in the microwave?
It depends on how hot you want your food to be. My recommendation is not
over 5 minutes.
5.
Can I put a cold ceramic bowl in the microwave?
The answer is no. The cold ceramic bowl will break into pieces if you do this.
First, let the bowl sit at room temperature before you place it in the microwave.
Microwaving Cold Glass: The Final Verdict
Can you microwave cold glass? The final verdict is an absolute no. However, if you
take time and ensure that your glassware settles to an appropriate temperature, you
can place the glass in the microwave. And please remember not to put your glassware
too long in the oven to prevent shattering.
Finally, please share this article if it is practical. This explanation can be valid for your
beloved to avoid unexpected accidents in the kitchen.
References
1. Pubchem.ncbi.nlm.nih.gov. 2022. PubChem Compound Summary for CID
66545795,
Soda
lime.
Available
at
<https://pubchem.ncbi.nlm.nih.gov/compound/Soda-lime>
2. Science.gov. 2017. Sample records for borosilicate glass substrates.
Available
at
<https://www.science.gov/topicpages/b/borosilicate+glass+substrates>
3. Testpubchem.ncbi.nlm.nih.gov. 2022. Glass article having non-reactive
surface and method for producing the same. Available at
<https://testpubchem.ncbi.nlm.nih.gov/patent/JP-2525516-B2>
21
Figure 2.2 Proposed conceptual framework
In short, chapter 2 gave an overview about the definitions of CSR and business
performance. The stakeholder’s theory was introduced to identify objectives for
CSR studies. Overall, CSR concepts have been evolving for decades and are
now widely recognized as the duties of business people to various aspects of
society.
22
Numerous impacts of CSR on the business performance have been presented in
the literature review. However, there are limited in-depth analyses of CSR
activities in Vietnam's international trade field. Consequently, based on
background theories and prior studies, the author developed hypotheses that
CSR practices on employees, shareholders, suppliers, customers, environment,
and community positively affect business performance. A research model was
also proposed in this chapter.
23
CHAPTER 3
METHODOLOGY
3.1 DATA COLLECTION METHOD
For the first objective, secondary data is collected about the situation of
international trade and CSR practice in Vietnam in 2021 by accessed on the
internet source from November 01, 2022 to December 05, 2022.
For the second objective, secondary data were gathered from annual
reports, financial statements, prospectus reports and relevant documents from
companies' websites, official news, and reports, as well as from the system of
Vietnam stock exchanges HOSE, HNX, and UPCOM of Vietnamese export
enterprises in 2021.
3.2 MEASUREMENT OF VARIABLES
3.2.1 Independent variable
Employee
Employees expect salary and other benefits in return for their labour.
Employees desire a wage, bonus, perks, and working environment
commensurate with their efforts. Companies that satisfy employee expectations
will have robust human resources to ensure sustainable development (Freeman
et al., 2010). This study uses the salary-to-income ratio (SIR) to describe the
corporate responsibility for the staff. The SIR is calculated as total salary
expenses and benefits for employees divided by the total income of the
enterprise (Fu & Shen, 2014). The higher SIR, the greater the employee benefits
the company provides, implying that the company spend its income back to
invest in human resource development and cares about employee welfare.
Shareholder
Shareholders are the owners and prominent investors of a corporation
whose most extensive requirement are the financial return. This study uses
earnings per share (EPS) as an indicator to reflect the corporate responsibility
for shareholders. EPS is a company's profit divided by the number of its
outstanding shares. The variable is considered good when EPS is positive
24
(EPS>0), and the higher the EPS reflects, the stronger the business capacity and
the higher the ability to pay dividends (Zhang, 2012).
Supplier
Receivables payment timing has a significant impact on suppliers'
benefits. Usually, the current ratio (CR) is used to determine a company's
obligation to its suppliers; it is calculated by dividing current assets by current
liabilities. CR is a measure of a company's capacity to manage short-term
accounts payable. The greater CR shows that the firm pays its suppliers in a
shorter time and is more concerned with its suppliers' welfare (Fu & Shen,
2014). In this study, the improvement in the CR indicator is used to examine the
CSR for suppliers. If the company has CR result in 2021 higher than in 2020,
give it a score of 1; otherwise, give it a score of 0.
Customer
Product quality is typically viewed as the minimum condition or minimum
threshold of product qualities a company must fulfill to place its products or
services in competitive markets (Rust, Moorman & Dickson, 2002, et al.). In
this study, the prestigious exporting business title for 2021, which is announced
by Vietnam's Ministry of Industry and Trade, is employed as an indicator of
product quality. The designation of prestigious exporting business indicated that
a company's export volume and reputation with international clients met
outstanding achievements. If the company is named in the list of prestigious
exporting business, give it a score of 1; otherwise, give it a score of 0.
Environment (Natural environment)
When they consider corporate social responsibility for the natural
environment, people consider trash reduction, pollution challenges, recycling
network systems, animal protection, etc. When reviewing annual reports, firms
frequently include one or two paragraphs detailing their environmental
protection efforts over the preceding few years (Zhang, 2012). In this study, we
used initiatives to reduce emissions targets in assessing environmental impacts
presented in the annual reports to indicate the corporate's responsibility for the
natural environment. If the company mentioned initiatives to reduce emissions
in its annual report, give it a score of 1; otherwise, give it a score of 0.
25
Community
Numerous studies utilized the ratio of social organization costs to total
annual revenue to evaluate CSR for the community (Zhang, 2012; Fu & Shen,
2014). However, many Vietnamese businesses do not detail their overall
expenditures on social initiatives in their annual reports. Duyen (2019)
suggested using the quantity of a company's community-oriented activities to
demonstrate CSR for the community. The greater a company's contributions to
the community, the better its reputation and business performance (Freeman et
al., 2001).
3.2.2 Control variables
Total asset
The enterprise's size will impact enterprise performance. For example,
large businesses attract more attention from the public, which expects them to
have a good reputation, leading to better performance. In this study, the total
asset from the financial report is utilized to determine the size of a business.
Because total asset shows the
Long-term debt-to-equity ratio
The debt-to-equity ratio (DER) illustrates the link between creditors' longterm funds and owners' investments. This ratio is a suitable control variable that
indicates a company's ability to repay its debt. In other words, this ratio indicates
the company's ability to adapt to risk (Zhang, 2012). A company's debt-toequity ratio is determined by dividing long-term debt by shareholders' equity.
The greater the debt-to-equity ratio, the greater the risk.
3.2.3 Dependent variable
As previously mentioned in the literature study, scholars have utilized a
variety of methods to measure the performance of a corporation. In this study,
financial performance is chosen to quantify enterprise performance, consistent
with earlier research on the relationship between CSR and economic success
(Weber, 2018; Shin & Kim, 2011). Using net revenue as the dependent variable
is recommended by Duyen (2019) for two key reasons. First, net revenue is the
actual cash inflows a company receives from doing business with its clients,
which reflects the company's actual financial performance. Second, net revenue
26
is the standard metric used to calculate financial ratios. The majority of financial
metrics such as return on sales (ROS), turnover of receivables, and turnover of
working capital, are derived from net revenue.
Inheriting previous studies, net revenue is chosen as the main dependent
variable of the study corporate social responsibility (CSR) and the business
performance of Vietnamese export enterprises. In which, net revenue is
collected in the company financial report.
27
Table 3.1: Summary variables measurement method used in the regression model
Measurement method
Variale type
Variable
Dependent
variable
Net revenue
Net revenue announced in financial report
Employees
Salary-to-income ratio
(Staff salary + benefit)/main business income
Suppliers
Current ratio
Dummy variable. If the company has CR result in 2021 higher than in
2020, give it a score of 1; otherwise, give it a score of 0.
Customers
Prestigious Exporting Business
Dummy variable. If the company is named in the list of Prestigious
Exporting Business, give it a score of 1; otherwise, give it a score of 0.
Shareholders
Earnings per share
Announced earnings per share at the end of 2021 by business
Environments
Initiatives to reduce emissions
Dummy variable. If the company mentioned initiatives to reduce
emissions in its annual report, give it a score of 1; otherwise, give it a
score of 0.
Communities
Company's community-oriented activities
Number of company's community-oriented activities
Size
Total asset
Total asset announced in financial report
Risk
Debt-to-equity ratio
Debt-to-equity ratio announced in annual report
Independent
variables (CSR)
Control Variables
Soure: Author's compilation 2022
19
Source
Duyen, 2019
Fu & Shen,
2014
Zhang, 2012
Duyen, 2019
Fu & Shen,
2014
3.3 DATA ANALYSIS
3.3.1 Descriptive statistics
Statistics is the synthesis of theoretical and applied methods in the field of
economics by drawing conclusions based on collected data and information.
Descriptive statistics represent an overview of the experimental data used for
analysis. Descriptive statistics are divided into measures of central tendency and
measures of variability (spread). Measures of central tendency include mean
and mode, while measures of variability include standard deviation, variance,
minimum and maximum variables, kurtosis, and difference.
•
•
•
•
•
•
•
Mean is the sum of all observed variables divided by the number of
observations.
Median (denoted Me) is the value in the middle position in a series
of numbers arranged in ascending or descending order.
Mode (denoted Mo) is the most repeated value in the data set
Variance is the average of the squared deviations from the Mean
The Standard Deviation is the square of the Variance
3.3.2 Diagnostic test
3.3.2.1 Definition
Regression analysis is used to measure the influence of independent
variables on dependent variables. This method allows for corroborating
evidence to answer the essay's research questions. Through multiple regression
methods, the model's constants and coefficients will be estimated. The Prob
coefficient (P-value) of the results of the regression analysis indicates the degree
of impact of the independent variables on each dependent variable. The
commonly used statistical significance levels are 1%, 5%, or 10% (in other
words, 99%, 95%, or 90% confidence). In this study, the author chose the
statistical significance level of 10%, that is, the independent variable is only
considered to have a strong influence on the dependent variable when the Prob
value of each independent variable in the small regression model is more than
10% (P-value<0.1), and vice versa.
20
3.3.2.2 Analytical model
The linear regression equation is follow:
lnY = β0 + β1 SIR + β2 lnEPS + β3CR + β4PRES + β5INIT + β6NOACT
+ β7lnTASSET + β8DER + ε
in which:
Y: Dependent variable (net revenue);
SIR: Salary-to-income ratio
EPS: Earnings per share
CR: Current ratio
PRES: Prestigious Exporting Business title
INIT: Initiatives to reduce emissions
NOACT: Company's community-oriented activities
TASSET: Total asset
DER: Debt-to-equity ratio
β0: The intercept (value of Y when all X values = 0)
β1->7: The regression coefficient of the variables
ε: The model error term
3.3.2.3 Criteria in linear regression analysis
R-squared is a goodness-of-fit measure for linear regression models. This
statistic indicates the percentage of the variance in the dependent variable that
the independent variables explain collectively. R-squared measures the strength
of the relationship between your model and the dependent variable on a
convenient 0 – 100% scale.
• 0% represents a model that does not explain any of the variation in
the response variable around its mean. The mean of the dependent
variable predicts the dependent variable as well as the regression
model.
• 100% represents a model that explains all the variation in the
response variable around its mean.
21
Usually, the larger the R-squared, the better the regression model fits
observations.
3.3.3 Correlation test
The Pearson correlation measures the strength of the linear relationship
between two variables. It has a value between -1 to 1. In particular:
• If the value of r is between 0 and 1, the relationship between the
variables is considered positive, meaning that the more independent
variables, the more dependent variables we can expect.
• If the value of r is between -1 and 0, the relationship between the
variables is negative, so the more independent variables we have,
the less we expect the dependent variable.
• If the value of r is 0, there is no correlation.
A correlation is considered weak or strong depending on the sample size
of the present study, the significance levels, and the small, medium, or large
correlation values. A general rule of thumb is that correlations whether positive
or negative, if the r-value is between 0.1 and 0.3 are considered small, if r equal
from 0.3 to 0.5 is the moderate correlation and r equal from 0.5 to 1 is the large
correlation (Hemphill, 2003).
3.3.4 VIF test
VIF assesses the correlation strength between independent variables in
regression analysis. Due to the presence of multiple variables in the model, it is
preferable to conduct a multicollinearity test in addition to the pair wise
correlation test. The primary issue is that the degree of multicollinearity grows
as the number of variables employed in a model increases; as a result, regression
model estimations of coefficients become unstable and standard errors for
coefficients can become greatly overstated. Stata's "VIF" command will be
utilized for this test. VIF stands for Variance Inflation Factor; typically, a VIF
larger than 10 is an issue, however a VIF less than 10 can be tolerated, albeit
not indicating a healthy level of inflation.
22
3.3.5 Heteroskedasticity test
The classical linear regression model has an important assumption that the
residuals in the population regression function have constant variance. The
study uses Breusch – Pagan test with the hypothesis H0 = "variances for the
errors are equal." If P-value < 0.05, then we reject H0 which means that there is
heteroscedasticity. Otherwise, P-value > 0.05, we accept H0 (variances for the
errors are equal).
In short, chapter 3 presented how data were collected. The measurement
method was also introduced for 01 dependent variable (net revenue), 06
independent CSR variables (salary-to-income ration, current ratio, earnings per
share, prestigious exporting business title, initiatives to reduce emissions,
company's community-oriented activities), and 02 control variable (total asset
and debt-to-equity ratio) in table 3.1. Last but not least, the author also
mentioned the analysis method with a multiple regression model.
23
CHAPTER 4
ANALYSIS AND RESULTS
4.1 OVERALL STUDY SCOPE
4.1.1 Vietnam overview
Vietnam is located on the eastern edge of the Indochinese peninsula in
Southeast Asia and encloses an area of approximately 331,212 square
kilometers. It shares the boundaries with China in the North, Laos and
Cambodia in the West. Vietnam is S-shaped on the map, with a north-to-south
distance of 1,650 kilometers and a coastline of 3,260 kilometers. The whole
country is composed of 63 provinces and 5 centrally-governed cities, namely
Hanoi (Capital), Ho Chi Minh City, Can Tho, Da Nang and Hai Phong. The
average population of Vietnam in 2021 is estimated at 98.51 million people, and
the GDP was worth 362.64 billion US dollars.
Source: Ministry of Home Affairs of Socialist Republic of Vietnam
Figure 4.1 Administrative map of Socialist Republic of Vietnam
Since the implementation of the Doi Moi in 1986, Vietnam has
accomplished outstanding achievements. Vietnam became a full member of the
24
Association of South East Asian Nations (ASEAN) in 1995, joined the AsiaPacific Economic Corporation (APEC) in 1998, and became an official World
Trade
Organization
(WTO)
member
in
2007.
Following
these
accomplishments, Vietnam has consistently participated in bilateral and
international trade accords thanks to its exceptional diplomacy and the trend of
globalization. The ASEAN Free Trade Area (AFTA) between Vietnam and
ASEAN countries went into effect in 1993. From 2003 to 2016, Vietnam signed
FTAs with China, Korea, Japan, India, Australia, New Zealand, Chile, Russia,
Belarus, America, Kazakhstan, and Kyrgyzstan. In recent years, Vietnam's
foreign trade has been highlighted by the successful signing of the EVFTA,
UKVFTA, and RCEP agreements (WTO Center and Integration, 2022).
As a result, Vietnam went from one of the world's poorest countries to a
lower middle-income nation in just a single generation. From 2002 to 2020, the
GDP per capita multiplied by 3.6, reaching roughly 3,700 USD. According to
the report of World Bank, the poverty rate in Vietnam (according to the
threshold of 1.9 USD per day) declined dramatically from over 32% to less than
2% in 2011.
4.1.2 International trade in Vietnam
4.1.2.1 Vietnamese export businesses
In 2018, according to the General Department of Vietnam Customs, there
were 85,600 firms engaged in import and export activities in Vietnam, more
than 5,800 firms if compare with 2017. The General Department of Customs
anticipates that by 2020 there will be 100,000 businesses engaged in import and
export activities.
However, the majority of Vietnam's international trade activities were
contributed by foreign direct investment (FDI) enterprises. FDI firms' import
and export value reached 463.43 billion USD in 2021 and accounted for 69.3%
of the country's total export turnover. The international trade value of local
companies increased by 18.3% (31.76 billion USD) from the previous year to
205.12 billion USD.
25
While Vietnamese businesses mainly export agricultural and aquatic
products, FDI firms are more likely to export machinery, textiles, and electronic
equipment. In 2021, there will be 5 groups of FDI exports with a revenue of at
least 10 billion USD, including phones and components with 56.94 billion USD;
computers, electronic products and components with 49.7 billion USD;
machinery and equipment with 35.56 billion USD; textile and garment with
more than 20 billion USD; and footwear with more than 14 billion USD.
4.1.2.2 Export activities of Vietnam in 2021
According to the General Statistics Office of Vietnam, 2021 was viewed
as the year of economic recovery, as countries increased vaccination campaigns
against Covid-19 epidemic. The gross domestic product (GDP) of Vietnam in
2021 increased by 2.58% over the same period in 2020. Of which, in the first
quarter, it increased by 4.72%, the second quarter increased by 6.73%, the third
quarter decreased by 6.02%, and the fourth quarter increased by 5.22%.
Regarding international trade, Vietnam's import and export activities
reached a record number with a total turnover of 668.55 billion USD in 2021, a
rise of 22.6% over the previous year. Exports climbed by 19%, while imports
increased by 26.6%. Besides the practical import activities, Vietnam’s exports
were considered to bring a spotlight to international trade in 2021 despite
difficulties from many sides.
In detail, the export structure in 2021 has changed positively, and the area
of export products is increasingly diversified. The group of processed industrial
products accounted for 89.2%, up 0.6%; Agricultural and forestry products
accounted for 7.1%, down 0.2%; Aquatic products accounted for 2.6%, down
0.4%; and the group of fuels and minerals accounted for 1.1%, the same as the
previous year.
26
7%
89%
Seafood
Agro-forestry products
Processing industry
Mineral fuel
Source: Vietnam Economic - Social Situation Report in 2021
Figure 4.2 Vietnam’s export structure in 2021 by industry group
Concurrently, trade agreements began to take effect. In 2021, there were
33 export markets with a turnover of over $1 billion (up 2 markets from 2020),
5 export markets with a turnover of over $10 billion, and 11 export markets with
a turnover of over $5 billion (up 3 markets from 2020).
120
100
Billion USD
80
60
40
20
0
China
USA
Korea
ASEAN
EU
Japan
Source: Vietnam Economic - Social Situation Report in 2021
Figure 4.3 Vietnam’s main export markets in 2021
Good growth was seen in exports to markets engaging in FTAs with
Vietnam like China (15%), the US (24.2%), the EU (14%), ASEAN (25.8%),
the Republic of Korea (15.8%), India (21%), New Zealand (42.5%) and
Australia (3.1%).
27
4.1.3 Corporate social responsibility practice in Vietnam
Entrepreneurs implementing CSR in developing nations are concerned
with economic, charitable, legal, and ethical obligations. In the case of Vietnam,
after economic duties have been met, which include significant job creation and
support to national economic development, the firm will focus on community
activities and philanthropic endeavors. The company will promptly form a
philanthropic foundation to aid victims in response to crisis events and
occurrences. On the other hand, environmental concerns are not considered to
the same extent as in industrialized nations, which could be attributed to lax
laws and a high degree of corruption. Sustainable growth requires the
simultaneous
achievement
of
three
aspects:
economic,
social,
and
environmental performance. However, most Vietnamese businesses appear to
recognize only two of these dimensions, leaving out environmental
performance. Consequently, CSR perception focuses on the social side when
businesses execute various philanthropic initiatives for the community.
Principal reasons for CSR to become popular in Vietnam
The openness of Vietnam
Since the Doi Moi policy, Vietnam has undergone substantial change,
culminating in the country's increasing integration into the regional and global
economies. The openness of Vietnamese society to outside influences has
increased the flow of socially responsible ideas and activities. Many
Vietnamese, for instance, have been exposed to international education
opportunities and western concepts as a result of global integration and
technological advancement. This new experience has broadened young people's
perspectives on global issues including business ethics, gender equality, worklife balance, slavery, and climate change (Edwards & Phan, 2014).
The penetration of foreign companies.
Since 2002, Vietnam has been exposed to CSR by Western governments,
multinational enterprises, and international organizations. In order to gain
access to the global market and competitive benefits, many Vietnamese
enterprises have imitated, promoted, and expanded CSR in their policies since
28
its introduction (Lee, 2016; Newman et al., 2018). Relatively recently, nongovernmental organizations (NGOs) have cooperated with government
statutory entities such as The Chamber of Commerce and Industry of Vietnam
(VCCI) and The Ministry of Labour, War Invalids and Social Affairs to promote
compliant business practices in Vietnam (Lim et al., 2017; Ya Hui & Hoa,
2016). For example, this advancement has forced the Vietnamese government
to make the necessary legal adjustments. The Law on Enterprises of Vietnam
specifies in great detail the obligations businesses must uphold when conducting
business. Article 8 of Vietnam's enterprise law outlines the following types of
company responsibilities:
-
Group of responsibility of enterprises to comply with business
conditions.
-
Group of responsibility for customers.
-
Group of responsibilities for tax and financial obligations to the
State.
-
Group of responsibilities for employees.
-
Group of responsibilities for society.
Intensification of international trade
Since there has been a worldwide push for more regulation and oversight
of governments' self-interested corporate practices, the Vietnamese government
has been compelled to participate in international CSR activities to further
integrate into the global economy (Newman et al., 2018). For example,
Vietnam, as a member of the TPP agreement, has committed to encouraging
enterprises operating within its territory to incorporate CSR into their policies
voluntarily and to actively fill legislation gaps in compliance with international
standards on labor rights and environmental degradation issues. In addition,
recently concluded trade agreements enhance the Vietnamese business
community's social responsibility (Peels et al., 2016). Specific markets, such as
Europe, ask that imported goods adhere to certain quality, environmental, and
social requirements. As a result, this has incentivized corporations to focus more
on social responsibility to meet the market's demands and simultaneously boost
their international competitiveness.
29
Historical Socio-cultural context
Since ancient times, patriotism and nationalism have played a crucial role
in the history of Vietnam, which is proved by the country's ability to retain its
national identity in the face of immense foreign influence and by providing
social cohesion to hold the country together despite substantial cultural and
other differences following a century of national fragmentation (Edwards&
Phan, 2008). The tradition of "Tuong than, tuong ai" (Solidarity) and "La lanh
dum la rach" (The leaves protect the tattered ones) contributes to the beauty of
the Vietnamese community. Consequently, since ancient times, the Vietnamese
have fostered a strong feeling of community, influencing Vietnamese
businesses' tendency to engage in social responsibility. Most corporations
engage in social responsibility by engaging in community-focused activities
such as charity, donations to various social welfare funds, aiding actions in
impoverished areas, and initiatives to promote social welfare in the local
community. For instance, during the Covid-19 pandemic, enterprises had done
CSR in a good direction. Businesses have begun to respond to the pandemic
with incredible speed and decisiveness. Vietnamese firms have demonstrated
their sense of responsibility through CSR actions for the community by
supporting and contributing to large-scale epidemic prevention and control
advances. Particularly noteworthy acts include: Donating to the National
COVID-19 Vaccine Fund, donating ventilators to medical examination and
treatment centers, and donating to food trucks to support epidemic areas.
Challenges for Vietnamese enterprise practice CSR
Although social practices have become a trend in recent years, many
barriers still prevent businesses from implementing CSR methodically.
According to research by the World Bank in Vietnam, the most significant
barriers and challenges to the implementation of corporate social responsibility
in Vietnam include:
1. The perception of social responsibility within and among Vietnamese
enterprises is quite different.
2. Labor productivity is affected when multiple codes of conduct (CoC)
have to be implemented synchronously.
30
3. Lack of financial and technical resources to implement corporate social
responsibility standards (especially for SMEs).
4. The difference between the Labor Code and the code of conduct for
customers confuses businesses, such as overtime issues or union activities.
5. The lack of transparency in applying corporate social responsibility in
practice hinders potential market benefits for businesses.
6. Conflicts in state regulations make the application of the code of
conduct not bring the desired effect, such as salary, benefits, and conditions of
employment
However, in such difficult conditions, businesses must pay attention to
CSR. Consumers, investors, policymakers, and NGOs globally are increasingly
concerned about the impact of globalization on workers' rights, the
environment, and community welfare. Businesses that do not comply with CSR
may no longer have the opportunity to access international markets.
4.2
CURRENT
SITUATION
OF
CORPORATE
SOCIAL
RESPONSIBILITY (CSR) OF VIETNAMESE EXPORT ENTERPRISES
4.2.1 Overview of surveyed enterprises
Table 4.1 Surveyed businesses by industry
Business Industry
Number of company
Percentage (%)
Raw material
25
23.15%
Consumer goods
33
30.56%
Healthcare
13
12.04%
Agriculture
37
34.25%
Source: Data processed by author
In table 4.1, the overview of assessed businesses reveals that most export
activities are concentrated in four key industries: raw materials, consumer
goods, healthcare, and agriculture. The majority is agricultural enterprises, with
37 companies accounting for 34.25%. The number of firms functioning in the
health sector was the smallest, accounting for 12.04%. The second and third-
31
ranked industries are consumer products (30.56 %) and raw materials (23.15
%), with 33 and 25 firms, respectively.
4.2.2 Descriptive statistics
Table 4.2 Descriptive statistics of the variables in the research model
Code
Variable
Unit
Mean
Min
Max
VND
4.42e+12
2.52e+08
8.86e+13
%
20.855
0.16
193.58
VND
3360.389
5
21,812
Y
Net revenue
SIR
Salary-to-income ratio
EPS
Earnings per share
CR
Current ratio
-
0.639
0
1
PRES
Prestigious Exporting
Business title
-
0.491
0
1
INIT
Initiatives to reduce
emissions
-
0.519
0
1
NOACT
Company's communityoriented activities
activity
3.537
0
57
TASSET
Total asset
VND
3.87e+12
1.50e+10
6.97e+13
DER
Debt-to-equity ratio
%
1.704
0.03
34.9
Number of observations: 108
Source: Stata processing results
4.2.2.1 Net revenue
Net revenue is a dependent variable that presents the performance of
businesses. According to the summary of the survey sample in table 4.2, the
average net revenue of the analyzed businesses is 4,423 billion VND. The
business with the lowest revenue is valued at VND 251 million, while the
business with the highest revenue is worth 88,628 billion.
32
Density
Figure 4.4 Distribution of exporting enterprises’ net revenue
Billion VND
Source: Stata processing results
However, the standard deviation between observations is exceptionally
high, at approximately 13,000 billion VND. It can be seen from figure 4.4 that
the distribution of net revenue is mainly less than 10,000 billion VND. In detail,
89 companies have net revenue lower than the average value (4,423 billion
VND), accounting for 82.41%. In other words, there is a large difference in net
revenue among surveyed enterprises. Therefore, the author proposed to use the
base e logarithm for the net revenue variable in the linear regression model to
reduce the difference gap.
4.2.2.2 Salary-to-income ratio
It can be seen from the table 4.2 that the average salary-to-income ratio of
the analyzed businesses is 20.85%. The highest ratio is 193.58%, and the lowest
is 0.16%. In general, the salary-to-income ratio of the investigated enterprises
recorded positive values, indicating that every VND paid to employees brings
profit to the business. The standard deviation is 26.31, which means that this
variable does not have big differences in value. Most values range between 0
and 50%, and very few are higher than 100%.
33
Numerous studies demonstrate that an organization's compensation, perks,
and training activities affect the workers' work performance. However, survey
data reveals that 66 of 108 observed enterprises, accounting for 61.11%, do not
establish employee welfare and training funds within their companies. This
implies that Vietnamese export companies do not really care about the welfare
for their employees beyond meeting their salary commitments, which might
impede employee work motivation and productivity.
Table 4.3 Employee benefits funds
Number of company
Percentage (%)
42
38.89%
66
61.11%
Businesses establish
employee benefits fund
Businesses do not establish
employee benefits fund
Source: Data processed by author
4.2.1.3 Earning per share
Earnings per share (EPS) is the proportion of a company's total profit
distributed to each common share currently in circulation. EPS is a coefficient
that illustrates a company's potential to generate a profit for each dong invested
by the owner and distribute earnings to investment shareholders. The greater the
EPS value, the more efficient the business and its ability to pay dividends.
According to the survey findings, 108 companies involved in the import and
export activities of Vietnam have a positive EPS value. Exporting companies
pay 3,360 VND on average for each share in 2021. The highest EPS value is
21,812 VND and the lowest value is 5 VND. Most businesses split their EPS
between 1,000 and 10,000 VND for each share, which accounts for 73.15% of
the total. 5.56% of companies allocate more than 10,000 VND for each share.
However, it is noted that there are no business in the agriculture industry pays
more than 10,000 VND per share.
34
Table 4.4 Earnings per share by industry
Unit : Company
1 – 1,000
1,000 – 10,000
10,000+
VND/share
VND/share
VND/share
Raw material
4
18
3
Consumer goods
4
26
2
Healthcare
3
9
1
Agriculture
11
26
0
Source: Data processed by author
However, the sample standard deviation is relatively large at 3,699 VND
that has has a left skew distribution (figure 4.5). In detail, there are 75 companies
that have EPS values lesser than the average value (3,360 VND), accounting for
69.4%. Therefore, the author proposed to use the base e logarithm for the
Earnings per share variable in the linear regression model to reduce the
difference gap.
Density
Figure 4.5 Distribution of earnings per share
Earnings per share
Source: Stata processing results
35
4.2.1.4 Current ratio
It is can be seen from table 4.2 that current ratio has the average value is
0.639. The highest value is 1, accounting for the companies has current ratio in
2021 higher than in 2020. The lowest value is 0, accounting for the companies
has a worser current ratio performance.
Table 4.5 show that 69 enterprises in the export sector announced that their
current ratio in 2021 is higher than in 2020, accounting for 63.89%. In other
word, the result implies that Vietnamese export companies have paid particular
attention to their relationship with suppliers.
Table 4.5 Liquidity of surveyed businesses
Number of company
Percentage (%)
Businesses have current ratio
higher than the previous year
69
63.89%
Businesses have current ratio
lower than the previous year
39
36.11%
Source: Data processed by author
4.2.1.5 Prestigious exporting enterprises
Every year, the Ministry of Industry and Trade of Vietnam publishes a list
of prestigious export enterprises to recognize businesses that have contributed
positively to Vietnam's export industry. In addition, this list intends to validate
the product quality of export-focused companies. In 2021, the list of prestigious
export enterprises was published with the participation of over 300 businesses
from various industries.
36
Figure 4.6 Prestigious businesses by industry in 2021
Other
24%
Agriculture
51%
Raw material
11%
Textiles
14%
Source: Ministry of Industry and Trade of Vietnam
According to the survey, agriculture firms made up the majority of this list. The
result is comprehensible, given that agriculture is still a significant and longstanding export business in Vietnam. Therefore enterprises in the agricultural
sector, notably in aquaculture and seafood processing, tend to contribute
significantly to the structure and export value of Vietnam.
Table 4.6 Surveyed enterprises in prestigious exporting enterprises list of
2021 by industry
Prestigious
exporting
enterprises
Number of
company
Percentage (%)
Raw material
9
8.33%
Consumer goods
16
14.82%
Healthcare
2
1.87%
Agriculture
26
24.07%
55
51,91%
The enterprises
are not on the
Prestigious list
Source: Data processed by author
It is can be seen from table 4.2 that prestigious Exporting Business title
variable has the average value is 0.491. The highest value is 1, accounting for
the companies have name in the list of Prestigious Exporting Business title. The
37
lowest value is 0, accounting for the companies whose names were not
mentioned in this list.
According to the survey, there are 53 surveyed companies existed in the
list of prestigious export enterprises, accounting for 49.09% of the total
observations.
Table 4.7 Prestigious exporting enterprises
Number of company
Percentage (%)
Prestigious exporting
enterprises
53
49.09%
The enterprises are not on the
Prestigious list
55
51.91%
Source: Data processed by author
4.2.1.6 Initiatives to reduce emissions
It is can be seen from table 4.2 that initiatives to reduce emissions variable
has the average value is 0.510. The highest value is 1, accounting for the
companies have Initiatives to reduce emissions. The lowest value is 0,
accounting for the companies whose do not have any Initiatives.
In figure 4.7, the survey results indicate that 52% of the observations,
corresponding to 56 businesses, have activities to decrease their operations'
environmental impact. In general, enterprise initiatives are very diverse. In
addition to the simple and low-investment initiatives, such as internal corporate
savings regulations, there are strategic initiatives targeted at attaining
sustainable development goals, such as investment and development projects to
restrict emissions or the use of various types of green energy in their production
activities.
38
Figure 4.7 Percentage of businesses that have initiatives to reduce
emissions
Non Initiatives to
reduce emissions
48%
Initiatives to
reduce emissions
52%
Source: Data processed by author
4.2.1.7 Company's community-oriented activities Initiatives to reduce
emissions
Although the global economy was prepared for its most robust rebound
since the Covid-19 pandemic recession in 2021, Vietnam continued to endure a
substantial outbreak in the last two quarters of 2021, which led to a long period
of social distancing and generated several difficulties in the society. However,
thank to the great effort of the whole country including the effective support of
businesses, Vietnam has successfully navigated the pandemic. Although
businesses are also heavily affected by the pandemic, particularly exporting
businesses, they are still willing to assist the country through communityoriented CSR activities such as providing essentials for people in epidemic areas
and donating to the national vaccine fund, as reported in the annual reports of
businesses.
In addition, further than CSR for the unexpected events as in the Covid19 period, Every year, Vietnamese businesses continue to engage in several
different types of community-focused CSR initiatives. The majority of
corporations engage in social responsibility by engaging in community-focused
activities like charity and donations such as activities to support the local
community, war invalids and martyrs, Vietnamese heroic mothers fund, and
many other activities with noble causes. Sampled enterprises show that
39
exporting firms engage in an average of four to five community-oriented
activities per year.
It is can be seen from table 4.2 that company's community-oriented
activities variable has an average value is 3.5 activities. The highest number of
community-oriented activities is 57 activities, while the lowest number is 0
activities.
4.2.1.8 Total asset
The survey reveals that the average asset of exporting businesses is 3,871
billion Vietnamese Dong. The firm with the smallest total assets, 14 billion
VND, operates in the sector of agriculture, while the enterprise with the highest
total assets, 69,651 billion VND, operates in the field of materials.
Table 4.8 Firm size by industry
Unit: billion VND
Mean
Max
Min
Raw material
6,920
69,651
153
Consumer goods
2,880
43,813
169
Healthcare
1,236
4,614
215
Agriculture
3,624
51,194
14
Source: Data processed by author
The proportion of businesses with assets larger than 1,000 billion VND
was 50.92%, corresponding to 55 businesses. The biggest proportion of
businesses functioning in the agriculture industry is 36%, while the smallest
proportion is in the healthcare sector at 9%. The second and third positions are
occupied by companies that produce consumer goods (31%) and raw materials
(24%), respectively.
40
Figure 4.8 Firm size larger than 1,000 billion VND by industry
Raw material
24%
Agriculture
36%
Consumer goods
31%
Healthcare
9%
Source: Data processed by author
However, the standard deviation between observations is exceptionally
high, at approximately 3,870 billion VND. Therefore, the author proposed to
use the base e logarithm for the net revenue variable in the linear regression
model to reduce the difference gap.
4.2.1.9 Debt-to-equity ratio
The ratio of long-term debt to equity reveals a company's capacity to
manage its financial resources compared to its debt with a maturity of more than
a year. The greater this ratio, the higher the company's financial risk since the
enterprise's capital is not self-generated, which can affect economic activity and
the ability to repay loans. An examination of Vietnam's export companies
reveals that around 46.3%, or 50 of the surveyed companies, have a debt-toequity ratio of less than 1. The average ratio is 1.704 indicates that the majority
of exporter assets consist of external loans.
4.3 THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
ON THE BUSINESS PERFORMANCE OF VIETNAMESE EXPORT
ENTERPRISES
4.3.1 Examining measurement instrument
In order for the muntiple regression model to have high reliability, it is
necessary
to
adhere
to
the
model's
assumptions,
heteroscedasticity, no variance, no multicollinearity.
41
including:
no
Heteroskedasticity test
An important assumption in the classical multiple regression model is that
the confounding factors ui (also known as residuals) appearing in the population
regression function have constant variance (homoscedasticity, also known as
the regression method). conditional false is constant); i.e. they have the same
variance. To test that the research model does not have variable variance, the
author uses Breusch - Pagan test. The test results show that, p-value =
0.0000<0.05, there is heteroskedasticity in the research model. It is
understanding because cross-sectional studies often have very small and large
values and, thus, are more likely to have heteroscedasticity.
Therefore, the study used Robust Standard Errors Model which is
developed by White (1980) and proposed to use the strong standard error
method to prevent heteroskedasticity that causes the estimated coefficients to be
biased in the OLS model.
Correlation analysis
To ensure the reliability of the model, before data processing, the
independent variables are tested. Correlations between independent variables
provide no indication that an unacceptable level of autocorrelation exists in the
data. The test results show that the correlation coefficient between the
independent variables is low (<0.8), which proves that they are not correlated
when considering all these variables simultaneously in the same model.
42
Table 4.9 Estimation results of correlation analysis
lny
sir
lneps
cr
pres
init
noact lntasset
lny
1.000
sir
-0.432
1.000
lneps
0.34
0.062
1.000
cr
0.389
-0.36
0.039
1.000
pres
0.349
-0.17
0.046
0.083
1.000
init
0.245
-0.18
0.108
0.202
0.093
1.000
noact
-0.003
-0.01
0.024
0.069
-0.058
0.01
1.000
lntasset
0.751
-0.08
0.233
0.316
0.193
0.246
0.089
der
0.032
-0.06
0.021
-0.139
-0.045
0.116
-0.054
der
1.000
-0.011 1.000
Source: Stata processing results
VIF test
The model's mean VIF variance exaggeration factor is 1.15. According to
Hoang Trong and Chu Nguyen Mong Ngoc, if the coefficient VIF < 10, there is
no multicollinearity phenomenon.
4.3.2. Linear regression results
A linear regression model is used to determine the strength of the
relationship between the CSR and business performance. The model includes 6
independent variables which presents CSR, are Salary-to-income ratio (SIR),
Earnings per share (EPS), Current ratio (CR), Prestigious Exporting Business
title (PRES), Initiatives to reduce emissions (INIT), Company's communityoriented activities (NOACT). Two control variabls are added in the position of
independent variables to increase the significance of the regression model are
Total asset (TASSET), Debt-to-equity ratio (DER). One dependent variable is
Net revenue (Y) which presents for business performance.
Because there is heteroskedasticity in the research model, the study used
Robust Standard Errors Model to strengthen the result. Besides, to test the
suitability of the multivariate regression model, it is necessary to consider the
Prob> value (probability greater than the chi-square test value).
In table 4.10, R2 = 0.7738 represents the model that explains 77.38% of
the variation in the response variable around its mean, and has significance at
p<0.001. This proves that the model is suitable for the data set and can be used.
43
Table 4.10 Estimation results of linear regression model
Code
Coef
Robust
Std. Err.
P>|t|
4.372
3.729
0.244
-.0238***
0.004
0.000
0.184
0.245
0.455
0.527***
0.158
0.001
Variable
Cons
SIR
Salary-to-income ratio
CR
Current ratio
PRES
Prestigious Exporting
Business title
INIT
Initiatives to reduce
emissions
-0.086
0.211
0.683
NOACT
Company's communityoriented activities
-0.02***
0.007
0.008
lnEPS
Earnings per share
0.244***
0.057
0.000
0.782***
0.136
0.000
0.014
0.023
0.553
lnTASSET Total asset
DER
Debt-to-equity ratio
Number of observations: 108
Prob>F = 0.000
R – square = 0.7738
Note: ***, **,*: There is statistical significance at 1%, 5% and 10%,
respectively.
Source: Stata processing results
The results of the regression model show that there are 04 variables of
CSR practice and 01 control variable that affect the business performance of
enterprises operating in the export sector listed on the Vietnam stock exchange.
Those variables include: salary-to-income variable (SIR), logarithmic value
base e of variable earning per share (lnEPS), variable prestigious exporting
business title (PRES), variable company's community-oriented activities
(NOACT) and a control variable that is the base e logarithm of the total asset
variable (lnTASSET). While lnEPS, PRES, and lnTASSET variables have a
significant influence on the net revenue of the enterprise (statistically significant
1%), SIR and NOACT variable indicates a negative correlation and is
statistically significant at the 1% level.
44
Salary-to-income ratio
The coefficient of CSR on employee which is presented by salary-toincome ration variable is statistically significant at 1%, the estimated coefficient
is -2,38%. Thereby showing the negative relationship between net revenue and
human resource investment capacity.
This conclusion contradicts the findings of McWilliams & Siegel (2001)
and Zhang (2012), who discovered a positive correlation between employeefocused CSR and corporate performance. However, this study’s result supports
the research of Fu & Shen (2014) who indicated the negative impact of
employee investment on financial performace in the short-time. The author
discovered that for every 1% increase in the salary to income ratio, Vietnamese
export enterprises would lose 2.38% of revenue in 2021. This result is
understandable because human capital investment increased costs in the short
term, negatively impacting the company's performance.
Earnings per share
Earnings per share is a measure of CSR for the shareholders. The
regression coefficient of this variable has a positive sign at 24.4% and is
statistically significant at the 1% level. This shows that when the enterprise is
able to pay dividends to its shareholders will lead to a positive impact on the
business performance.
In fact, shareholders, the organization's essential capital resources, have a
close economic relationship with its operation. When shareholders engage in a
corporation searching for interest and money, the company must provide
sufficient dividends. This provides a solid foundation for the mobilization and
expansion of investment aid to facilitate the implementation of initiatives that
contribute to the revenue growth of businesses, provided that corporations
optimize shareholder value. Besides the long-term shareholders who consider
the company as their equity, there are a number of small stock investors whose
investments depend on stock price fluctuations. Although there are differences
in stock investment styles, Keim (1978) argues that earnings per share are still
crucial in stock investment for even short- or long-term investors. Higher
earnings per share indicate a successful business operation, which instills
45
investor confidence, drives the stock price higher, and influence positively
financial performance.
In conclusion, fulfilling shareholder benefits makes it easier for companies
to attract financial investment and propels them in a positive direction on the
stock market, which contributes to revenue growth.
Prestigious Exporting Business title
The results of the regression model indicate that CSR for customers, which
is presented by prestigious exporting business title, is positively and
significantly related to firm performance. In which the regression coefficient of
this variable has a positive sign at 25.7% and is statistically significant at the
1% level. In other words, the companies that appear in the list of prestigious
businesses earn more revenue than others.
Customers are the primary source of a company's revenue. Thus the
objective of any company's business career is to acquire the preference and
affection of customers for their products. The final product and services they
offer to the consumer market are the way businesses approach this objective.
Many studies agreed that positive customer perceptions about product quality
and safety may lead to increased sales for enterprises (Waddock & Graves,
1997; Zhang, 2012; Berman, 1999). When examined in the context of
international trade, the results indicate no difference. Because being nominated
for the prestigious exporting business list demonstrates that the company has
obtained positive sales signals from the foreign market by generating highquality, customer satisfied products, thereby establishing a foundation of
confidence in the brand.
Company's community-oriented activities
Company's community-oriented activities is a measure of CSR for
communities. The regression coefficient of this variable has a negative sign at
0,2% and is statistically significant at the 1% level. This indicates that there is
relationship between CSR for communities and business performance.
It is understandable that the findings disproved the hypothesis hyphothesis
H6: There is a positive relationship between CSR for the community and
46
business performance. According to Zhang (2012), the negative correlation
between engaging in community-oriented activities and revenue is due to the
fact that large sums of money are spent quickly, while the advantages of CSR
take longer to manifest. Therefore, in this one year study, this result is not
surprising.
Total asset
Total asset is the control variable that presents the firm size. The regression
coefficient of this variable has a positive sign at 78.2% and is statistically
significant at the 1% level. This shows that when the bigger enterprise in terms
of assets, the higher chance for this company generate greater revenue. Previous
studies concurred with this view. The larger asset size of the business, the higher
capacity and equity for the company to invest to expand their busines, thus
leading to a higher revenue (Zhang, 2012).
Table 4.11: Overview of hypothesis result
Hypothesis
Impact
Result
H1: There is a positive relationship between CSR for
employees and business performance
-
Reject
H2: There is a positive relationship between CSR for
shareholders and business performance
+
Support
H4: There is a positive relationship between CSR for
customers and business performance
+
Support
H6: There is a positive relationship between CSR for the
communities and business performance
-
Reject
Source: Results of author's data processing
In short, chapter 4 has overviewed the study scope, including Vietnam,
international trade, and CSR practice in Vietnam. A preliminary assessment of
the current status of CSR practices of 108 listed export companies on Vietnam
Stock Exchange was also introduced. Besides, the author analyzed the research
model and tested the hypothesis. Research results show that there are 02 CSR
variables and 01 control variable that has statistical significance and a positive
47
impact on the dependent variable: Earnings per share, prestigious exporting
business title, and total asset. While the variable of salary-to-income and
company's community-oriented activities showed a negative impact on net
revenue and is statistically significant at the 1% level.
48
CHAPTER 5
CONCLUSION, IMPLICATIONS AND LIMITATIONS
5.1 CONCLUSION
From the problem sets as well as the research objectives were formed and
answered by empirical research, the author wants to find out the impact of CSR
on business peformance, particularly in export sector. In this thesis, the author
provides an overview about CSR situation in Vietname, and explores what
stakeholders of CSR and how these stakeholders impact on the business
peformance of Vietnamese export enterprise listed in Vietnam stock exchange.
Based on the stakeholders theoretical approach presented in the thesis,
hypotheses have been formed and conceptual framework has been established.
Research data in the thesis is collected through finacial reports and annual
reports of 108 companies that engaged in export activities in 2021.
The main analytical methods used are descriptive statistics, correlation
analysis and linear regression analysis. The results and discussion have been
detailed and mentioned in chapter 4. The result rejects 02 hypothesis H6: There
is a positive relationship between CSR for the community and business
performance, H1: There is a positive relationship between CSR for employees
and business performance.; and supports 02 CSR stakeholders that have shown
a significant impact on the business performance of Vietnamese export
enterprise: H2: There is a positive relationship between CSR for shareholders
and business performance.; and H4: There is a positive relationship between
CSR for customers and business performance.
5.2 IMPLICATIONS
By examining business performance, in particular the business
performance via net revenue in 2021 can partly understand the impact of CSR
on business performance of export companies in Vietnam. These insights can
be of particular importance to the manager and marketing departments of a
company engaged in export activities to establish company vision and
marketing strategy. There are 02 implications for Vietnamese export enterprises
consider in their strategy.
49
First, raising the product quality
The improvement of the product quality level of customers will further
boost consumption. With the continuous improvement of living standards and
demanding levels of customers, people would then spend more reasonably and
raise their awareness of the environment and social responsibility. Paying
attention to improving quality helps companies easily engage in new markets
and conquer users' hearts. A few ways to help increase product quality are to
follow international standards and invest in independent quality assurance
teams.
Second, ensuring income per share for shareholders
Shareholders play a vital role in the continued existence of a corporation
because they are the primary investors. Companies must maintain their
shareholder relationships by paying their dividends and caring for their benefits.
To achieve this, businesses might invest in their operations to identify
possibilities to expand the business and increase profits.
Last but not least, caring for community and employees
Investing in the community and employees may increase costs and have a
negative influence on short-term financial success, but it assists businesses in
enhancing their intangible assets, such as brand and image. While funding or
participation in community programs strengthens brand images and fosters
consumer loyalty, investing in people enables businesses to increase revenues
and build enterprise value by boosting productivity and conducting innovation
research amonng the staffs.
5.3 LIMITATIONS AND FUTURE RESEARCH DIRECTION
5.3.1 Limitations
The study was limited in data collection due to time and budget limitations.
The author was only able to conduct data collecting from the companies which
are listed on the Vietnamese stock exchange due to the complication to contact
enterprises for internal data. Besides the majority of the sample are mainly in 4
key industries agriculture, consumer good, raw material, and healthcare which
may present the view as less representative. Although the thesis still has the
50
above limitations, the research has not had a great influence on the results, and
the research results still have practical significance.
5.3.2 Future research direction
The debate on how CSR and business performance relate to each other
never stops. The findings of the research provide numerous avenues for future
research.
First, it is possible to conduct additional research into this relationship in
certain Vietnam provinces or other industries. Due to time and resource
constraints, this study gives a broad picture of the relationship between CSR
and company performance in only four primary industries and does not consider
the impact of administrative geography. Consequently, the future study can
consider narrowing the research focus to specific regions or exporting
industries, which are expected to have more representative investigations based
on administrative and industrial positions.
Second, future research can examine the responses of a wider variety of
CSR stakeholders over a longer time frame. It is challenging to examine the
relationship between CSR and corporate performance and place all stakeholder
metrics within the same time frame. If at all possible, long-term research on the
relationship between CSR and corporate performance may yield more credible
results than a short-term study.
Finally, it encourages future research to be more imaginative when
developing a theoretical framework for studying CSR-related issues. As the
majority of CSR studies are founded on two main theoretical foundations: The
"Pyramid of Corporate Social Responsibility" by Carroll (1991) and the
Stakeholder theory by Freeman (1984), it is expected that a new combination of
theories will bring effective answers to the problem and research questions.
51
REFERENCES
Vietnamese references
Duyên, C. T. L., Liêm, N. T., & Ngân, N. H. K. (2014). Nghiên cứu mối quan
hệ giữa trách nhiệm xã hội, lợi ích kinh doanh và hiệu quả tài chính của
doanh nghiệp khu vực Thành phố Cần Thơ. Tạp chí Khoa học Trường
Đại học Cần Thơ, (32), 7-18.
Duyên, C. T., Anh, N. P., & Thi, N. T. (2019). Tác động Của Kết quả thực
Hành trách nhiệm xã hội đến thành tích Kinh Doanh Của Các Doanh
Nghiệp Niêm Yết Trên Sàn Giao Dịch chứng Khoán Việt Nam. Can Tho
University Journal of Science. 55, 148-156.
Dương, N. T., & Nguyễn, H. K. (2019). Trách nhiệm xã hội của doanh nghiệp
và hành vi tiêu dùng: nghiên cứu định tính trong ngành nước uống giải
khát đóng chai không cồn tại tp. Cần thơ.
Hoàng, T., & Chu, N. M. N. (2008). Phân tích dữ liệu nghiên cứu với SPSStập 1.
Lê, H. N. T., & Võ, V. C. (2019). Nghiên cứu về tác động của trách nhiệm
xã hội đến thành quả hoạt động của doanh nghiệp trên địa bàn Thành phố
Đà Nẵng.
Phương, N. T. N., Dũng, V. H., & Hương, N. T. (2019). Phân tích tác động
của trách nhiệm xã hội đến giá trị thương hiệu và sự gắn kết tổ chức
thông qua cảm nhận của người lao động tại các doanh nghiệp thủy sản
vùng Đồng bằng sông Cửu Long. Tạp chí Khoa học Trường Đại học Cần
Thơ, 55(6), 89-100.
Ta, H. T. T., & Bui, N. T. (2018). Effect of corporate social responsibility
disclosure on financial performance. Asian Journal of Finance &
Accounting, 10(1), 40-58.
Thảo, H. T. P., & Như, N. K. V. (2021). Trách nhiệm xã hội của doanh
nghiệp, động lực và hiệu quả công việc: Một nghiên cứu tại các công ty
dược phẩm đa quốc gia. Tạp chí khoa học Đại học mở Thành Phố Hồ
Chí Minh-Kinh Tế Và Quản Trị Kinh Doanh, 16(3), 36-49.
Thuy, H. T. (2019). Thực trạng công bố thông tin trách nhiệm xã hội (CSR)
của các công ty niêm yết tại Việt Nam. Phát triển & hội nhập, 05-06.
52
English references
Albinger, H. S., & Freeman, S. J. (2000). Corporate social performance and
attractiveness as an employer to different job seeking populations.
Journal of business ethics, 28(3), 243-253.
Antonietti, R., & Marzucchi, A. (2014). Green tangible investment strategies
and export performance: A firm-level investigation. Ecological
economics, 108, 150-161.
Antunovich, P., Laster, D., & Mitnick, S. (2000). Are high-quality firms also
high-quality investments?. Available at SSRN 716602.
Berman, S. L., Wicks, A. C., Kotha, S., & Jones, T. M. (1999). Does
stakeholder orientation matter? The relationship between stakeholder
management models and firm financial performance. Academy of
Management journal, 42(5), 488-506.
Boehe, D. M., & Barin Cruz, L. (2010). Corporate social responsibility,
product differentiation strategy and export performance. Journal of
Business ethics, 91(2), 325-346.
Bowen, H.R, 1953. Social Responsibilities of the Businessman Harper &
Row. University of Iowa press. Iowa City, 245 pages.
Bragdon, J. H., & Marlin, J. (1972). Is pollution profitable. Risk
management, 19(4), 9-18.
Brammer, S., & Millington, A. (2005). Corporate reputation and
philanthropy: An empirical analysis. Journal of business ethics, 61(1),
29-44.
Brammer, S., Brooks, C., & Pavelin, S. (2006). Corporate social performance
and stock returns: UK evidence from disaggregate measures. Financial
management, 35(3), 97-116.
Breadsell, J. (2008). The Influence of CSR Dsclosure on Corporate
Governance and Company Performance. 2008.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward
the moral management of organizational stakeholders. Business
Horizons, 34(4), 39–48.
Carroll, A. B. (1999). Corporate social responsibility. Business & Society,
38(3), 268–295.
53
Carroll, A. B. (2008). A history of corporate social responsibility: concepts
and practices. In A. M. Andrew Crane, D. Matten, J. Moon, & D. Siegel
(Eds.), The Oxford handbook of corporate social responsibility (pp. 19–
46). New York: Oxford University Press.
Chaffee, E. C. (2017). The origins of corporate social responsibility. U. Cin.
L. Rev., 85, 353.
Clarkson, M. E. (1995). A stakeholder framework for analyzing and
evaluating corporate social performance. Academy of management
review, 20(1), 92-117.
Committee for Economic Development. (1971). Social responsibilities of
business corporations. USA: Committee for Economic Development.
Edwards, V., & Phan, A. (2008). Vietnam. In J. Benson & Y. Zhu (Eds.),
Trade unions in asia: An economic and sociological analysis. London:
Routledge.
Edwards, V., & Phan, A. (2014). Managers and management in Vietnam: 25
years of economic renovation (Doi moi). Oxford: Routledge.
Evan, W. M., & Freeman, R. E. (1988). A stakeholder theory of the modern
corporation: Kantian capitalism.
Farrar, D. E., & Glauber, R. R. (1967). Multicollinearity in regression
analysis: the problem revisited. The Review of Economic and Statistics,
92-107.
Fiori, G., Di Donato, F., & Izzo, M. F. (2007). Corporate social responsibility
and firms performance-an analysis on Italian listed companies. Available
at SSRN 1032851.
Frederick, W. C. (2006). Corporation, be good!: the story of corporate social
responsibility. Dog Ear Publishing.
Freeman, R. E. (1994). The politics of stakeholder theory: Some future
directions. Business ethics quarterly, 4(4), 409–421.
Freeman, R. E., & Dmytriyev, S. (2017). Corporate social responsibility and
stakeholder theory: Learning from each other. Symphonya. Emerging
Issues in Management, (1), 7-15.
Friedman, M., 1970. The Social Responsibility of Business to increase
profits. New York Times. 6 pages.
54
Griffin, J. J., & Mahon, J. F. (1997). The corporate social performance and
corporate financial performance debate: Twenty-five years of
incomparable research. Business & society, 36(1), 5-31.
Grönhaug, K., & Gilly, M. C. (1991). A Transaction Cost Approach to
Consumer Dissatisfaction and Complaint Actions. Journal of Economic
Psychology, 12, 165-185.
Hart, S. L., & Ahuja G. (1996). Does it pay to be green? An empirical
examination of the relationship between emission reduction and firm
performance. Business Strategy and the Environment, 5, 30-37.
Heald, M. (1970). The social responsibilities of business: company and
community 1900–1960. United States of America: Pr. of Case Western
Reserve Univ
Hemphill, J. F. (2003). Interpreting the magnitudes of correlation
coefficients.
Jenkins, H., & Obara, L. (2006, September). Corporate Social Responsibility
(CSR) in the mining industry–the risk of community dependency. In
Corporate Responsibility Research Conference, Dublin (pp. 4-5).
Kanji, G. K., & Chopra, P. K. (2010). Corporate social responsibility in a
global economy. Total Quality Management, 21(2), 119-143.
Keim, G. D. (1978). Managerial Behavior and the Social Responsibilities
Debate: Goals Versus Constraints. Academy of Management Journal,
21(1), 57-68
King, B., & McDonnell, M. H. (2012). Good firms, good targets: The
relationship between corporate social responsibility, reputation, and
activist targeting. Corporate Social Responsibility in a Globalizing
World: Toward Effective Global CSR Frameworks. Edited by Kiyoteru
Tsutsui and Alwyn Lim.(Forthcoming).
Khojastehpour, M., & Saleh, M. A. (2019). The effect of CSR commitment
on firms’ level of internationalization. Social Responsibility Journal.
Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory:
Reviewing a theory that moves us. Journal of management, 34(6), 11521189.
55
Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A
literature review of the history and evolution of corporate social
responsibility. International Journal of Corporate Social Responsibility,
4(1), 1-23.
Lee, S. Y. (2016). Responsible supply chain management in the Asian
context: The effects on relationship commitment and supplier
performance. Asia Pacific Business Review, 22(2), 325–342.
https://doi.org/10.1080/13602381.2015.1070012.
Liljander, V., & Strandvik, T. (1995). The Nature of Customer Relationships
in Services, in Swartz, T.A., Bowen, D.E. and Brown, S.W. (Eds),
Advances in Services Marketing and Management, 4, JAI Press, London,
forthcoming.
Lim, M. K., Tseng, M.-L., Tan, K. H., & Bui, T. D. (2017). Knowledge
management in sustainable supply chain management: Improving
performance through an interpretive structural modelling approach. J
Clean Prod, 162, 806–816 https://doi.org/10.1016/j.jclepro.2017.06.056.
Maignan, I., & Ferrell, O. C. (2001). Corporate citizenship as a marketing
instrument‐Concepts, evidence and research directions. European
journal of marketing.
Makni, R., Francoeur, C., & Bellavance, F. (2009). Causality between
corporate social performance and financial performance: Evidence from
Canadian firms. Journal of Business Ethics, 89(3), 409-422.
Maldonado-Guzman, G., Pinzon-Castro, S. Y., & Lopez-Torres, G. C.
(2016). Corporate social responsibility and business performance: The
role of Mexican SMEs. International Journal of Asian Social Science,
6(10), 568-579.
Martos‐Pedrero, A., Jiménez‐Castillo, D., Ferrón‐Vílchez, V., & Cortés‐
García, F. J. (2022). Corporate social responsibility and export
performance under stakeholder view: The mediation of innovation and
the moderation of the legal form. Corporate Social Responsibility and
Environmental Management.
McGuire, J. W. (1963). Business and society. New York: McGraw-hill
56
McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and
financial performance: correlation or misspecification?. Strategic
management journal, 21(5), 603-609.
Newman, C., Rand, J., Tarp, F., & Trifkovic, N. (2018). The transmission of
socially responsible behaviour through international trade. Eur Econ
Rev, 101, 250–267 https://doi.org/10.1016/j.euroecorev.2017.10.013.
Newman, J. C., & Breeden, K. M. (1992). Managing in the environmental
era. Columbia Journal of World Business, 27(3-4), 210-222.
Nguyen, N. T. T., Nguyen, N. P., & Hoai, T. T. (2021). Ethical leadership,
corporate social responsibility, firm reputation, and firm performance: A
serial mediation model. Heliyon, 7(4), e06809.
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and
financial performance: A meta-analysis. Organization studies, 24(3),
403-441.
Peels, R., Echeverria, E. M., Aissi, J., & Schneider, A. (2016). Corporate
social responsibility in international trade and investment agreements:
Implications for states, business, and workers. Hanoi: International
Labour
Office
Retrieved
from
http://www.ilo.org/wcmsp5/groups/public/-%2D-dgreports/-%2Dinst/documents/publication/wcms_476193.pdf.
Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the
environment-competitiveness relationship. Journal of economic
perspectives, 9(4), 97-118.
Rashid, M. Z. A. & Ibrahim, S. (2002). Executive and Management Attitudes
towards Corporate Social Responsibility in Malaysia. Corporate
Governance, 2(4), 10-16.
Rust, R. T., Moorman, C., & Dickson, P. R. (2002). Getting return on quality:
revenue expansion, cost reduction, or both?. Journal of marketing, 66(4),
7-24.
Savitz, A. W., & Weber, K. (2006). The Triple Bottom Line. San Francisco:
Jossey Bass.
Shin, M.S.; Kim, S.E.; Kim, B.S. The effects of corporate social
responsibility expenditure on firm value. J. Financ. Eng. 2011, 10, 99–
125.
57
Storbacka, K., Strandvik, T., & Grönroos, C. (1994). Managing customer
relationships for profit: the dynamics of relationship quality.
International journal of service industry management, 5(5), 21-38.
Sun, L., & Yu, T. R. (2015). The impact of corporate social responsibility on
employee performance and cost. Review of Accounting and Finance,
14(3), 262-284.
The Roper Organization, Inc. (1990), "The Environment: Public Attitudes
and Individual Behavior," July.
Tsoutsoura, M. (2004). Corporate social responsibility and financial
performance.
Turban, D. B., & Greening, D. W. (1997). Corporate social performance and
organizational attractiveness to prospective employees. Academy of
management journal, 40(3), 658-672.
Uadiale, O. M., & Fagbemi, T. O. (2012). Corporate social responsibility and
financial performance in developing economies: The Nigerian
experience.
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business
performance in strategy research: A comparison of approaches.
Academy of management review, 11(4), 801-814.
Waddock, S. A., & Graves, S. B. (1997). Quality of management and quality
of stakeholder relations: Are they synonymous?. Business & society,
36(3), 250-279.
Weber, J., & Wasieleski, D. M. (Eds.). (2018). Corporate social
responsibility. Emerald Group Publishing.
White, Halbert (1980), “A Heteroskedasticity-Consistent Covariance Matrix
Estimator and a Direct Test for Heteroskedasticity,” Econometrica 48:4,
817-838.
Xiao, C., Ye, J., Esteves, R. M., & Rong, C. (2016). Using Spearman's
correlation coefficients for exploratory data analysis on big dataset.
Concurrency and Computation: Practice and Experience, 28(14), 38663878.
58
Xiaole Zhang, and Peixin Gu, 2012. On the Relationship between TNXH and
Financial Performance: An empirical study of US firms. Master thesis.
Jönköping University.
Ya Hui, L., & Hoa, N. T. T. (2016). A study on knowledge management and
corporate social responsibility in Vietnamese manufacturing companies.
International Journal of Recent Advances in Organizational Behaviour
& Decision Sciences, 2(2), 772–787.
Yu-jin Fu and Ju-qin Shen, 2014. Correlation Analysis between Corporate
Social Responsibility and Financial Performance of Chinese Foodprocessing Enterprises. Advance Journal of Food Science and
Technology, 7: 850-856.
59
APPENDIX 01
COMPANY LIST
No.
Company name
Tickle
Symbol
Industry
1
32 Joint Stock Company
A32
Consumer goods
2
Bibica Corporation
BBC
Consumer goods
3
Bich Chi Food JSC
BCF
Consumer goods
4
Binh Minh Garment Joint Stock Company
BMG
Consumer goods
5
Saigon - Hanoi Beer Coporation
BSH
Consumer goods
6
Ha Long Canned Food Joint Stock
Corporation
CAN
Consumer goods
7
Cholimex Food Joint Stock Company
CMF
Consumer goods
8
The Dap Cau Garment Corporation Joint
Stock Company
DCG
Consumer goods
9
Dien Quang Joint Stock Company
DQC
Consumer goods
10
Everpia JSC
EVE
Consumer goods
11
Binh Thanh Import - Export Production &
Trade JSC
GIL
Consumer goods
12
March 29 Textile - Garment Joint Stock
Company
HCB
Consumer goods
13
Hue Textile Garment JSC
HDM
Consumer goods
14
Hoang Thi Loan Textile & Garment Joint
Stock Company
HLT
Consumer goods
15
Hoa Tho Textile & Garment Joint Stock
Corporation
HTG
Consumer goods
60
No. Company name
Tickle
Symbol
Industry
16
KIDO Group
KDC
Consumer goods
17
Mirae JSC
KMR
Consumer goods
18
Lix Detergent Joint Stock Company
LIX
Consumer goods
19
Garmant 10 Corporation - Joint Stock
Company
M10
Consumer goods
20
Duc Giang Corporation
MGG
Consumer goods
21
Nha Be Garment Corporation - Joint Stock
Company
MNB
Consumer goods
22
Song Hong Garment Joint Stock Company
MSH
Consumer goods
23
Nam Dinh Garment Joint Stock Company
NJC
Consumer goods
24
Phong Phu Corporation
PPH
Consumer goods
25
Phan Thiet Gament Import - Export Joint
Stock Company
PTG
Consumer goods
26
Sa Giang Import Export Corporation
SGC
Consumer goods
27
Thanh Cong Textile Garment Investment
Trading Joint Stock Company
TCM
Consumer goods
28
Thien Long Group Corporation
TLG
Consumer goods
29
Vinatex Da Nang JSC
VDN
Consumer goods
30
Viet Tien Garment Corporation
VGG
Consumer goods
31
Viet Nam Books JSC
VNB
Consumer goods
VNM
Consumer goods
32
Viet Nam Dairy Products Joint Stock
Company
61
No. Company name
Tickle
Symbol
Industry
33
26 JSC
X26
Consumer goods
34
An Phat Bioplastics JSC
AAA
Raw materials
35
VICEM Packaging But Son JSC
BBS
Raw materials
36
Ben Thanh Rubber Joint Stock Company
BRC
Raw materials
37
Cat Loi Joint Stock Company
CLC
Raw materials
38
Forest Products Export JSC Of Quang Nam
FRC
Raw materials
39
Quang Tri Minh Hung Joint Stock Company
GMH
Raw materials
40
Viet Tri Paper Joint Stock Company
GVT
Raw materials
41
Hapaco Corporation
HAP
Raw materials
42
Hai Phong Hoang Ha Paper JSC
HHP
Raw materials
43
An Tien Industries JSC
HII
Raw materials
44
Hoa Phat Group JSC
HPG
Raw materials
45
Hoa Sen Group
HSG
Raw materials
46
Nam Kim Steel Joint Stock Company
NKG
Raw materials
47
Plastic Additives JSC
PGN
Raw materials
48
Pomina Steel Corporation
POM
Raw materials
49
Rang Dong Holding Plastic JSC
RDP
Raw materials
50
Siam Brothers Vietnam JSC
SBV
Raw materials
51
Thuan Duc Joint Stock Company
TDP
Raw materials
52
Thai Nguyen Iron And Steel JSC
TIS
Raw materials
62
No. Company name
Tickle
Symbol
Industry
53
Vinh Plastic & Bags JSC
VBC
Raw materials
54
Vicostone JSC
VCS
Raw materials
55
Viglacera Corporation – JSC
VGC
Raw materials
56
Viet Phat Import Export Trading Investment
JSC
VPG
Raw materials
57
Viet Thanh Plastic Trading And
Manufacturing Joint Stock Company
VTZ
Raw materials
58
Yen Bai Industry Mineral JSC
YBM
Raw materials
59
Mekong Fisheries Joint Stock Company
AAM
Agriculture
60
Bentre Aquaproduct Import And Export JSC
ABT
Agriculture
61
Cuu Long Fish Joint Stock Company
ACL
Agriculture
62
An Giang Import - Export Company
AGM
Agriculture
63
Saigon Export Foodstuffs and Agricultural
Products JSC
AGX
Agriculture
64
An Giang Fruit - Vegetables & Foodstuff JSC
ANT
Agriculture
65
Nam Viet Corporation
ANV
Agriculture
66
Bien Ho Tea Joint Stock Company
BHG
Agriculture
67
Binh Dinh Food Joint Stock Company
BLT
Agriculture
68
Ca Mau Joint Stock Seafoods Company
CAT
Agriculture
69
Camimex Group JSC
CMX
Agriculture
70
The Southern Rubber Industry JSC
CSM
Agriculture
63
No. Company name
Tickle
Symbol
Industry
71
Petro Viet Nam Ca Mau Fertilizer JSC
DCM
Agriculture
72
Danang Rubber Joint Stock Company
DRC
Agriculture
73
Daklak Rubber Joint Stock Company
DRG
Agriculture
74
Gia Lai Coffee JSC
FGL
Agriculture
75
Sao Ta Foods Joint Stock Company
FMC
Agriculture
76
Hoang Anh Gia Lai Joint Stock Company
HAG
Agriculture
77
Hanoi Trade Joint Stock Corporation
HTM
Agriculture
78
I.D.I International Development &
Investment Corporation
IDI
Agriculture
79
Kien Giang Import & Export Joint Stock
Company
KGM
Agriculture
80
Kien Hung JSC
KHS
Agriculture
81
Kien Giang Trade and Tourism Company
Limited
KTC
Agriculture
82
Long An Food Processing Export Joint Stock
Company
LAF
Agriculture
83
Loc Troi Group Joint Stock Company
LTG
Agriculture
84
Minh Phu Seafood Corporation
MPC
Agriculture
85
Masan Group Corporation
MSN
Agriculture
86
Nafoods Group Joint Stock Company
NAF
Agriculture
87
Quang Binh Import & Export JSC
QBS
Agriculture
64
No. Company name
Tickle
Symbol
Industry
88
Rubber Industry & Import - Export Joint
Stock Company
RBC
Agriculture
89
Hung Hau Agricultural Corporation
SJ1
Agriculture
90
Nam Can Seaproducts Import Export Joint
Stock Company
SNC
Agriculture
91
Da Nang Seaproducts Import - Export
Corporation
SPD
Agriculture
92
Thuan Phuoc Seafoods & Trading
Corporation
THP
Agriculture
93
Tin Nghia Corporation
TID
Agriculture
94
Thong Nhat Rubber Joint Stock Company
TNC
Agriculture
95
Vinh Hoan Corporation
VHC
Agriculture
96
American Vietnamese Biotech INC
AMV
Healthcare
97
Bach Tuyet Cotton Corporation
BBT
Healthcare
98
Danapha Pharmaceutical Joint Stock
Company
DAN
Healthcare
99
Danang Pharmaceutical Medical Equipment
JSC
DDN
Healthcare
100
Danang Pharmaceutical Medical Equipment
JSC
DHG
Healthcare
101
Domesco Medical Import Export Joint Stock
Corporation
DMC
Healthcare
DVN
Healthcare
102 Vietnam Pharmaceutical Corporation - JSC
65
Tickle
Symbol
Industry
103 Ha Tinh Pharmaceutical JSC
HDP
Healthcare
104 Lam Dong Pharmaceutical JSC
LDP
Healthcare
105 Nam Duoc JSC
NDC
Healthcare
106 OPC Pharmaceutical Joint Stock Company
OPC
Healthcare
107 Traphaco Joint Stock Company
TRA
Healthcare
YTC
Healthcare
No. Company name
108
Ho Chi Minh City Medical Import Export
Joint Stock Company
66
APPENDIX 02
VARIABLES’ MEASUREMENT
Tickle
Symbol
Revenue
A32
CSR criteria
Total asset
Debttoequity
sir
eps
cr
pres
init
noact
650,148,136,248
23.67
4,134
0
0
0
6
528,130,895,998
1
BBC
595,720,558,795
12.19
1,380
1
0
0
57
1,892,931,510,365
1
BCF
511,689,011,348
16.52
2,126
1
1
0
1
406,562,636,297
0
BMG
266,977,650,013
50.39
1,216
0
1
0
3
169,434,461,577
1
BSH
564,299,991,169
9.40
2,808
1
0
0
2
394,616,892,069
0
CAN
539,203,109,984
30.96
5,884
1
0
1
3
307,815,537,217
2
CMF
2,508,601,055,214
18.61
21,813
1
0
0
5
1,161,803,752,679
1
DCG
477,332,345,576
61.07
3,219
1
1
0
6
307,685,193,506
2
DQC
644,083,395,032
31.54
787
1
0
1
5
1,157,334,159,883
0
EVE
861,203,089,132
35.91
1,570
1
0
1
6
1,267,920,507,493
0
GIL
3,880,555,691,299
9.16
8,965
1
0
1
0
3,581,917,038,311
2
HCB
840,978,013,335
51.02
1,962
1
1
1
3
678,761,507,704
4
HDM
1,858,867,600,535
37.94
10,285
0
0
0
4
931,077,908,376
2
HLT
797,004,190,135
10.46
12,130
1
1
1
0
345,493,319,658
2
HTG
3,156,404,342,336
34.49
7,894
1
1
1
2
2,097,013,309,705
3
KDC
11,508,839,428,961
10.29
2,560
1
0
1
4
10,731,725,909,883
1
KMR
494,512,891,008
10.79
318
1
0
1
2
1,074,983,254,681
1
LIX
2,613,003,212,256
11.81
4,640
1
0
1
3
1,167,643,782,265
1
M10
3,461,779,157,922
27.58
1,875
0
1
1
6
1,927,387,803,563
4
MGG
1,913,652,187,696
10.61
3,108
0
1
0
0
956,734,686,141
5
MNB
1,680,637,094,443
22.88
352
0
0
0
0
1,978,087,549,420
7
MSH
4,747,622,751,547
37.82
8,846
0
1
0
4
3,202,636,670,460
1
NJC
342,704,541,976
33.30
3,986
0
1
1
4
284,325,279,247
3
PPH
1,056,516,372,726
14.45
4,684
1
0
0
4
3,000,125,558,389
1
PTG
400,217,054,080
71.07
7,884
0
1
0
0
276,064,752,821
1
SGC
383,509,221,816
22.50
4,442
0
1
0
4
226,295,659,004
0
TCM
3,494,306,431,705
35.41
1,700
1
1
1
3
3,553,741,765,748
1
TLG
1,271,047,141,704
33.90
3,201
0
1
1
8
1,815,306,124,739
0
VDN
427,590,810,651
49.39
675
0
0
1
3
320,146,096,983
4
VGG
6,006,529,179,425
13.42
1,267
1
1
0
1
3,955,143,258,779
2
67
Tickle
Symbol
Revenue
CSR criteria
sir
eps
cr
pres
init
noact
Total asset
Debttoequity
VNB
23,142,939,662
81.29
482
0
0
0
0
927,743,079,790
1
VNM
51,966,817,711,789
6.53
4,517
1
1
1
6
43,813,425,086,580
0
X26
990,419,261,725
13.33
4,583
0
0
0
0
619,962,621,711
2
AAA
5,129,103,820,636
6.11
994
1
1
1
3
6,968,569,447,912
0
BBS
523,353,809,694
17.40
1,701
1
0
1
0
394,565,027,353
3
BRC
348,077,052,557
17.12
1,753
0
0
1
5
311,352,234,631
0
CLC
2,142,096,427,823
2.56
4,651
1
0
1
7
1,050,169,038,970
0
FRC
336,017,797,863
27.34
10,993
0
0
0
0
291,688,188,694
1
GMH
165,243,440,732
24.99
1,728
0
0
1
3
210,300,777,547
0
GVT
1,989,277,222,902
5.69
17,248
1
0
0
4
1,029,500,567,472
1
HAP
497,669,937,607
1.17
723
1
0
0
8
710,847,977,786
0
HHP
547,469,679,500
0.50
1,420
1
0
1
3
562,550,111,540
1
HII
691,599,226,532
45.51
2,177
1
1
0
1
841,957,305,020
2
HPG
214,604,646,349
109.22
7,166
0
0
1
3
69,651,177,582,213
1
HSG
86,267,008,434,432
0.84
8,465
1
1
1
3
24,514,351,948,975
1
NKG
27,952,241,958,920
1.36
10,419
1
1
1
3
14,967,296,557,036
2
PGN
170,359,343,228
0.83
1,624
0
0
1
3
153,978,129,620
1
POM
7,420,403,929,331
2.31
654
1
0
0
0
10,488,093,684,202
3
RDP
2,183,053,046,999
0.16
693
1
1
1
2
2,222,429,385,004
3
SBV
459,488,547,965
20.64
1,811
0
0
0
3
776,960,567,492
0
TDP
2,168,193,909,459
6.83
1,442
1
1
1
4
2,408,246,755,585
3
TIS
18,374,903,314,256
3.08
662
1
0
1
0
10,189,554,848,316
4
VBC
1,026,871,148,582
13.82
2,625
0
1
1
3
434,041,199,276
2
VCS
6,852,707,069,184
2.94
9,890
1
1
1
5
6,474,693,300,334
0
VGC
5,559,156,835,247
12.02
2,729
1
1
1
3
14,649,159,889,802
1
VPG
3,863,571,827,129
0.72
9,282
1
0
1
1
2,383,898,779,855
1
VTZ
1,088,361,010,089
3.49
1,390
1
0
0
1
885,972,791,622
3
YBM
493,429,945,594
5.07
1,033
0
0
0
1
436,088,936,759
1
AAM
134,110,305,244
13.09
22
1
0
0
1
201,087,507,683
0
ABT
342,469,000,898
16.46
2,939
0
1
1
1
594,573,318,100
0
ACL
1,161,144,784,415
7.65
839
1
1
0
2
1,239,699,538,108
1
AGM
2,878,720,000,410
1.58
2,402
0
1
1
4
1,789,415,830,695
3
AGX
68,540,999,264
28.00
6,476
1
0
0
0
478,317,989,732
0
68
Tickle
Symbol
Revenue
CSR criteria
sir
eps
cr
pres
init
noact
Total asset
Debttoequity
ANT
498,309,680,215
21.58
1,521
1
1
0
0
240,412,873,191
2
ANV
4,254,130,849,618
6.15
1,013
1
1
1
5
4,237,124,980,514
1
BHG
60,708,694,044
4.96
19
1
1
1
5
163,390,753,002
1
BLT
1,720,673,660,035
1.06
1,966
1
1
0
0
183,234,071,649
0
CAT
821,128,882,854
9.46
3,112
0
1
0
3
380,255,936,177
2
CMX
2,093,645,423,310
0.32
1,595
1
1
1
3
2,421,584,295,083
1
CSM
4,893,507,659,690
5.08
396
1
1
1
6
4,153,312,769,340
2
DCM
9,882,795,869,597
8.04
3,073
1
1
1
5
10,999,912,643,657
0
DRC
4,379,518,236,174
1.57
2,448
1
1
1
4
3,153,943,084,235
1
DRG
639,030,387,099
34.14
640
1
0
0
3
2,362,895,355,833
1
FGL
39,034,070,663
15.21
29
0
0
0
2
191,796,235,846
1
FMC
4,024,240,452,434
13.28
4,677
1
1
0
5
2,211,223,119,094
0
HAG
252,349,016
14.53
219
1
0
1
5
14,962,628,747
2
HTM
539,008,534,150
15.21
5
0
1
0
5
2,937,522,185,987
0
IDI
3,458,812,348,640
7.33
600
1
1
0
1
6,223,688,720,882
1
KGM
4,625,435,642,512
0.94
544
1
1
0
2
916,912,620,240
2
KHS
760,644,668,750
10.26
4,251
1
1
0
3
438,768,894,010
1
KTC
5,383,888,484,394
2.39
570
1
1
0
0
1,269,417,372,524
2
LAF
415,382,034,689
12.36
2,439
0
1
0
4
279,751,884,085
0
LTG
9,750,367,442,816
11.33
4,406
1
1
0
4
7,662,702,092,939
2
MPC
10,140,905,910,128
8.30
3,058
1
1
1
1
8,327,287,287,001
1
MSN
88,628,767,000,000
4.99
7,269
1
0
1
5
51,194,605,438,456
2
NAF
1,082,773,303,843
2.73
1,238
0
0
1
5
1,344,908,107,726
1
QBS
1,523,133,726,355
0.64
6
1
0
0
2
1,256,082,140,603
1
RBC
118,566,267,519
90.65
247
0
0
0
1
206,838,146,364
1
SJ1
1,121,406,224,356
7.02
563
1
0
1
2
162,456,246,621
2
SNC
704,367,241,849
6.41
300
0
1
1
4
186,690,454,638
1
SPD
858,641,749,957
6.68
104
0
1
1
2
452,643,482,683
3
THP
2,670,760,551,157
9.23
607
1
1
1
1
1,376,966,701,069
3
TID
2,467,535,212,658
4.43
1,896
1
1
0
5
7,293,724,748,884
2
TNC
70,190,859,828
65.22
1,614
0
0
0
8
385,719,620,952
0
VHC
5,613,878,513,425
12.15
6,040
1
1
1
7
7,177,507,114,274
0
AMV
91,310,690,021
2.78
926
0
0
0
0
1,227,997,181,431
0
69
Tickle
Symbol
Revenue
CSR criteria
sir
eps
cr
pres
init
noact
Total asset
Debttoequity
BBT
128,747,114,880
40.95
596
1
0
1
3
319,458,361,569
1
DAN
452,438,409,499
32.17
2,707
0
1
0
3
886,481,394,995
0
DDN
1,546,299,235,285
3.92
1,069
1
0
0
1
532,914,838,110
2
DHG
4,003,163,917,775
38.88
5,720
1
0
1
5
4,614,517,067,940
0
DMC
1,498,394,846,590
19.86
4,587
1
1
1
7
1,621,851,432,988
1
DVN
22,479,881,487
193.58
774
0
0
0
4
2,823,461,091,829
1
HDP
346,665,310,548
18.10
1,043
1
0
0
2
246,886,617,749
1
LDP
161,902,372,898
37.48
2,981
0
0
0
3
215,920,989,485
0
NDC
509,278,456,010
51.97
11,428
0
0
0
2
356,485,590,802
0
OPC
931,035,982,003
40.70
4,742
1
0
1
4
958,383,167,598
1
TRA
2,184,777,368,926
12.00
5,177
1
0
1
4
1,486,102,057,182
0
YTC
604,264,621,064
7.79
3,463
0
0
1
4
780,803,450,704
35
Source: Data collected from 108 financial and annual reports of Vietnamese
export enterprises
70
APPENDIX 03
DATA PROCESSING RESULTS
1. Descriptive statistics
. sum sir eps cr pres init noact tasset der
Variable
Obs
Mean
Std. Dev
Min
Max
sir
108
20.855
26.30774
.16
193.58
eps
108
3360.389
3699.339
5
21813
cr
108
.6388889
.482562
0
1
pres
108
.4907407
.5022449
0
1
init
108
.5185185
.5019864
0
1
noact
108
3.537037
5.589419
0
57
tasset
108
3.87e+12
9.60e+12
1.50e+10
6.97e+13
der
108
1.703981
3.433319
.03
34.9
2. Correlation Analysis
. pwcorr lny sir lneps cr pres init noact lntasset der
lny
sir
lneps
cr
pres
init
noact
lntasset
lny
1.0000
sir
-0.4319
1.0000
lneps
0.3404
0.0616
1.0000
cr
0.3887
-0.3603
0.0388
1.0000
pres
0.3492
-0.1719
0.0457
0.0825
1.0000
init
0.2449
-0.1758
0.1081
0.2015
0.0934
1.0000
noact
-0.0031
-0.0135
0.0242
0.0691
-0.0581
0.0097
1.0000
lntasset
0.7509
-0.0763
0.2325
0.3159
0.1930
0.2457
0.0895
1.0000
der
0.0319
-0.0596
0.0214
-0.1390
-0.0446
0.1161
-0.0540
-0.0110
71
der
1.0000
3. Multicollinearty test
. vif
Variable
VIF
1/VIF
cr
1.33
0.750825
lntasset
1.27
0.793095
sir
1.22
0.817052
init
1.13
0.887713
lneps
1.08
0.925772
pres
1.07
0.934420
der
1.06
0.941735
noact
1.02
0.981270
Mean VIF
1.15
4. OLS result
. reg lny sir lneps cr pres init noact lntasset der
Source |
SS
df
MS
-----------+----------------------------------
Number of obs
=
108
F(8, 99)
=
42.32
Model |
257.962692
8
32.2453364
Prob > F
=
0.0000
Residual |
75.4270752
99
.761889649
R-squared
=
0.7738
Adj R-squared
=
0.7555
Root MSE
=
.87286
-----------+---------------------------------Total |
333.389767
107
3.11579221
---------------------------------------------------------------------------lny |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
-----------+---------------------------------------------------------------sir |
-.0238422
.0035485
-6.72
0.000
-.0308832
-.0168011
lneps |
.2436252
.0580048
4.20
0.000
.1285311
.3587193
cr |
.1840157
.2018048
0.91
0.364
-.2164088
.5844403
pres |
.5278558
.174617
3.02
0.003
.1813777
.8743338
init |
-.0863081
.1784128
-0.48
0.630
-.4403179
.2677016
noact|
-.0200697
.0152403
-1.32
0.191
-.0503098
.0101703
lntasset|
.7816665
.0652947
11.97
0.000
.6521077
.9112254
der|
.0136075
.0253265
0.54
0.529
-.0366458
.0638609
_cons |
4.371894
1.708997
2.56
0.012
.0908734
7.762915
----------------------------------------------------------------------------
72
5. Heteroskedasticity test
6. Regression analysis (Robust Standard Errors Model)
. reg lny sir lneps cr pres init noact lntasset der, robust
Linear regression
Number of obs
=
108
F(8, 99)
=
38.97
Prob > F
=
0.0000
R-squared
=
0.7738
Root MSE
=
.87286
---------------------------------------------------------------------------lny |
Coef.
|
Robust
t
P>|t|
[95% Con f. Interval]
Std. Err.
-----------+---------------------------------------------------------------sir |
-.0238422
.0042361
-5.63
0.000
-.0322475
-.0154368
lneps |
.2436252
.0572899
4.25
0.000
.1299495
.3573008
cr |
.1840157
.2454968
0.75
0.455
-.3031031
.6711346
pres |
.5278558
.1586152
3.33
0.001
.2131288
.8425872
init |
-.0863081
.2105069
-0.41
0.683
-.5039995
.3313833
noact|
-.0200697
.0073764
-2.72
0.008
-.0347061
-.0054334
lntasset|
.7816665
.1360409
5.75
0.000
.5117318
1.051601
der|
.0136075
.0228626
0.60
0.553
-.0317568
.0589718
_cons |
4.371894
3.72997
1.17
0.244
-3.029176
11.77296
----------------------------------------------------------------------------
73