The impact of corporate governance on sustainability reporting quality: Evidence from Vietnamese listed companies

Type of the article: Research ArticleSustainability reporting is a vital tool for providing stakeholders with transparent and comprehensive information about a company’s economic, environmental, and social performance. The quality of this reporting is paramount, as it enables stakeholders to make informed decisions and assess an organization’s long-term sustainability. This study aims to investigate the connection between corporate governance, a mechanism that promotes a culture of ethical and comprehensive reporting, and sustainability reporting quality. The research also examines the moderating role of the audit committee in enhancing the effect of corporate governance on the quality of sustainability reporting. With a research sample of 162 listed companies on the Vietnamese stock exchange within the research period from 2018 to 2023, the study employs a quantitative method, using feasible generalized least squares for data analysis. The results show significant positive influences of board size, board independence, board expertise, and board meetings on firm sustainability reporting quality. The role of the audit committee in strengthening the relationship between board independence and the quality of sustainability reporting is also confirmed. These outcomes provide valuable insights into how the board of directors should be structured to enhance the quality of sustainability performance reporting, leading to better informed decision-making for firms’ stakeholders.