Regression models for determining foreign ownership ratio in Vietnamese listed firms: The role of environmental, social, and governance (ESG) scores

This paper proposes regression models to investigate the impact of ESG scores and other factors on foreign ownership in Vietnamese listed firms.ESG scores, as a valuable tool for measuring a firm's environmental, social, and governance performance, provide foreign investors with insights into investment risks and potential, enabling them to determine optimal ownership levels for maximising returns.This study contributes to the growing body of research on the role of ESG scores in foreign ownership by developing models to explore the relationship between ESG scores, other relevant factors, and foreign ownership.The authors address the endogeneity issue between firm-specific control variables and ESG scores using a 2SLS-IV approach.Our proposed models serve as a foundation and reference point for future research examining the influence of ESG scores and other factors on foreign ownership in Vietnamese listed firms.