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24 Pt. 2 J. Legal Ethical & Regul. Isses 1 (2021)
Corporate Social Responsibility, Board Independence, State Ownership and Cost of Debt in Vietnamese Firms

handle is hein.journals/jnlolletl2424 and id is 722 raw text is: Journal of Legal, Ethical and Regulatory Issues CORPORATE SOCIAL RESPONSIBILITY, BOARD INDEPENDENCE, STATE OWNERSHIP AND COST OF DEBT IN VIETNAMESE FIRMS Phung Anh Thu, Nguyen Tat Thanh University Thai Hong Thuy Khanh, Nguyen Tat Thanh University ABSTRACT One of the criteria that firms consider when making financial decisions is the cost of debt. This research explored the relationship between Corporate Social Responsibility, Board Independence, State Ownership, and Debt Cost in Vietnam's Developing Countries. We use quantitative methods of linear regression to find out the relationship with a sample of 82 energy firms from 2007 to 2016. The findings show that there is a negative association between CSR, board independence, and state ownership on the cost of debt in Vietnamese energy firms. This study supports the policy implications for listed firms, investors, and creditors by improving corporate image and the effective cost of debt. JEL Classification: M40, M41. Keywords: Cost of Debt, Corporate Social Responsibility, Board Independence, State Ownership. INTRODUCTION Moreover, the issue related to the cost of debt is one of the criteria, which firms consider to making financial decisions. Firms tend to invest more in financial capital when the cost of debt is low. Therefore, determining the factors that affect the cost of debt in order to reduce the cost of debt is a topic significant. As a result, firms can improve their competitiveness in the market, increase profits and enhance operational performance. However, the cost of debt is constantly changing due to the impact of many factors internal and external their business and especially one factor that this study is talking about is the impact of social responsibility disclosure. Many theoretical and empirical studies have considered the social responsibility factor of the business to its cost of debt. The activities related to corporate social responsibility has attracted many researchers since the early 20th century because nowadays investors want to know not only financial information but also non-financial information. On environmental and social aspects, society becomes an equally important factor in the cost of capital in listed companies. Investors believe that social, environmental and governmental issues can affect their investment risk. Prior researches around the world show that the implementation of CSR can bring benefits to businesses and society, simultaneously aiming to improve reputation, and reduce asymmetric Legal and Ethical Affairs 1 1544-0044-24-S5-1018 Citation Information: Thu, P.A., & Khanh, T.H.T. (2021). Corporate social responsibility, board independence, state ownership and cost of debt in Vietnamese firms. Journal of LaQal, Ethical and Raqulatory Issues, 24(S5), 1-12 Volume 24, Special Issue 5, 2021