Does CSR disclosure pay off? Evidence on the economic consequences of CSR reporting from Vietnam’s UPCoM market

Purpose This study aims to investigate whether corporate social responsibility (CSR) disclosure delivers measurable economic benefits for firms traded on Vietnam’s Unlisted Public Company Market (UPCoM). This study examines the association between CSR reporting and firm value, financial performance, cost of capital and dividend policy. Design/methodology/approach A CSR disclosure index was manually constructed based on the Global Reporting Initiative (GRI) Standards and applied to a balanced panel of 189 UPCoM firms during 2020–2023. Using multivariate panel regressions with firm-level controls, this study tests the relationship between CSR disclosure and firm value (Tobin’s Q), profitability (return on assets and return on equity), cost of capital and dividend policy. Findings Higher CSR disclosure is positively associated with firm value, profitability and dividend policy, while negatively associated with the cost of capital. These results suggest that CSR transparency is linked to lower information asymmetry, greater investor confidence and more favourable firm-level economic outcomes. Research limitations/implications The analysis focuses on UPCoM firms within a specific period and relies on secondary data. Future studies could expand the scope by incorporating additional markets, longer time horizons or alternative econometric techniques to validate the findings further. Practical implications CSR disclosure represents a strategic investment that signals credibility, improves access to finance and enhances both valuation and dividend capacity. For policymakers, the results of this study highlight the need for clearer guidance and incentives to improve reporting quality and consistency. Originality/value This study provides novel evidence on the economic consequences of GRI-based CSR disclosure in an emerging market, reinforcing the strategic importance of transparency for firm performance and sustainable growth.