Title: Corporate social responsibility and financial performance: the mediating role of corporate governance

Authors: Tam Phan Huy; Anh Luu Quynh; Yen Le Hoang Phi; Quynh Hua Nguyen Nhu; Ngan Nguyen Thi Tuyet; Ha Nguyen Ngan

Addresses: University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, Ho Chi Minh City, Vietnam

Abstract: This study explores the relationship between corporate social responsibility (CSR), governance mechanisms, and financial performance (return on asset (ROA)) in 62 manufacturing firms listed on the Ho Chi Minh City Stock Exchange from 2018 to 2022. Using regression analysis on data manually collected from annual reports, it examines how CSR dimensions - economic, environmental, and social - interact with governance structures such as board size and independence. Results show that while CSR positively influences ROA, the governance structure significantly moderates this effect. For instance, large boards may hinder the effectiveness of environmental CSR, whereas firms where the CEO also serves as chairman tend to support CSR more actively. The findings underscore the importance of aligning governance with CSR strategies to enhance firm performance, offering valuable insights for stakeholders in rapidly growing industries.

Keywords: CSR; corporate social responsibility; financial performance; corporate governance; manufacturing; ROA; return on asset.

DOI: 10.1504/IJBAF.2025.150264

International Journal of Behavioural Accounting and Finance, 2025 Vol.7 No.4, pp.337 - 364

Received: 25 May 2024
Accepted: 02 Sep 2024
Published online: 05 Dec 2025 *

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