Tóm tắt tiếng anh công bố thông tin ngân hàng xanh và giá trị doanh nghiệp của các ngân hàng thương mại niêm yết tại việt nam – Ảnh hưởng của yếu tố trung gian và Điều tiết

HO CHI MINH UNIVERSITY OF BANKING TRAN NGUYEN SA GREEN BANKING DISCLOSURE AND FIRM VALUE OF LISTED COMMERCIAL BANKS IN VIETNAM – IMPACT OF MEDIATOR AND MODERATOR... HO CHI MINH UNIVERS

HO CHI MINH UNIVERSITY OF BANKING

TRAN NGUYEN SA

GREEN BANKING DISCLOSURE AND FIRM VALUE

OF LISTED COMMERCIAL BANKS IN VIETNAM – IMPACT OF MEDIATOR AND MODERATOR

HO CHI MINH UNIVERSITY OF BANKING

TRAN NGUYEN SA

GREEN BANKING DISCLOSURE AND FIRM VALUE

OF LISTED COMMERCIAL BANKS IN VIETNAM – IMPACT OF MEDIATOR AND MODERATOR

Supervisor: Associate Professor Dr Ha Thi Thieu Dao

HO CHI MINH CITY – DECEMBER, 2024

CHAPTER 1 INTRODUCTION 1.1 Motivation of research

The United Nations Climate Change Conference (COP) is a series of important conferences organized by the United Nations, related to climate change, with the participation of member countries of the United Nations Framework Convention on Climate Change (UNFCCC) As of 2023, there have been 26 COPs held, starting with the first COP in Berlin, Germany, in 1995 Participating countries negotiate measures

to reduce the impacts of climate change and share responsibilities for implementing these activities An important milestone was COP 21, which took place on December

12, 2015, in Paris, with representatives of 195 countries, including Vietnam Here, countries reached a historic agreement to prevent global warming, an agreement they had not been able to reach in the previous two decades The agreement officially comes into effect from 2020 with targets identified for each phase as shown in Figure 1.1 of the thesis

Vietnam has taken a number of measures to comply with its commitments to the 2015 Climate Change Agreement (COP 21) in both the financial and non-financial sectors

In the past, the environment was less relevant to the financial sector, but recently, policymakers have recognized that the banking sector has an indirect responsibility for assessing the environmental impacts of projects before providing financing To implement environmental responsibilities, the Ministry of Finance and the State Bank

of Vietnam have issued many directives and decisions, including regulations on green credit growth and environmental risk management in banking activities These decisions aim to encourage banks to actively implement environmental protection measures, thereby creating incentives to promote green activities and helping the government achieve its international commitments on climate change To be successful, it is necessary to demonstrate a positive relationship between green banking disclosure and firm value of the bank

The relationship between green banking disclosure and sustainable performance, term firm value of a company in general, and commercial banks in particular has been hotly debated and thoroughly studied in studies in other countries around the world; this relationship in Vietnam has almost not been empirically studied In addition, the results obtained in countries around the world have not yet reached consensus Specifically, Simpson & Kohers (2022) found a positive relationship between social responsibility and firm value, while Wijayanti & Dondoan (2022) found the opposite—social responsibility of banks has a negative impact on firm value of banks One possible reason why previous studies have not reached a firm conclusion is that previous studies have relied on a simple conceptualization of the relationship between green banking disclosure and firm value without considering the effects of other mediating factors such as bad debts and operating costs (Khan et al., 2021) According

long-to the study by Khan et al (2021) in the context of Bangladesh, a country with a high NPL ratio of about 6.7% to 9.9% during 2012–2022 (World Bank, 2023a), the positive impact of green banking disclosure on firm value was mitigated by the moderating effect of NPL However, for countries with low NPL ratios such as Vietnam—the NPL ratio has always been controlled at a low level (below 2.0%) in the period 2019–202 (World Bank, 2023b)—the moderating role of NPL may have some differences In addition, the cost-conscious school supports the findings of Hassel et al (2005), as the results indicate that environmental performance has a negative impact on the market value of enterprises, while the cost-conscious school agrees that environmental investment may act as a proxy for increased costs, leading to reduced earnings and lower market value (Jaggi & Freedman, 1992) However, empirical research to explore the mediating effect of operating costs on the relationship between green banking disclosure and firm value of commercial banking systems has not been conducted Therefore, this doctoral thesis aims to determine the impact of green banking disclosure on the firm value of Vietnamese commercial banks and further examine the

impact of bad debt and operating costs on this relationship From there, the study provides more scientific basis for making appropriate proposals and recommendations

to enhance the development of green activities of commercial banks in Vietnam

That is the reason why the doctoral thesis chose the research topic "Green banking

disclosure and firm value of listed commercial banks in Vietnam – impact of mediator and moderator factors.”

1.2 Research objectives

With the research topic "Green banking disclosure and firm value of listed commercial

banks in Vietnam – impact of mediator and moderator factors” the doctoral thesis

determines the general and specific objectives as follows:

1.2.1 General objective

Analyzing the impact of green banking disclosure on the firm value of listed commercial banks in Vietnam, in which the impact of the mediator factor of operating costs and the moderator role of bad debt is considered From there, the doctoral thesis can provide more information and a scientific basis for planners to make appropriate proposals and recommendations to enhance the development of green activities at commercial banks in Vietnam

1.2.2 Specific objectives

The doctoral thesis identifies the following specific objectives::

- First, study the impact of green banking disclosure on the firm value of

Vietnamese commercial banks

- Second, study the moderating impact of bad debt on the relationship between green

banking disclosure and firm value of Vietnamese commercial banks

- Third, study the mediating impact of operating costs on the relationship between

green banking disclosure and firm value of Vietnamese commercial banks

- Fourth, give some suitable proposals and recommendations to enhance the

development of green activities of commercial banks in Vietnam

- Does green banking disclosure indirectly impact firm value through the mediator

of operating costs? What is the mediator effect?

- What are the appropriate proposals and recommendations to enhance the development of green activities of commercial banks in Vietnam?

1.4 Research objects and scopes

1.4.1 Research objects

The impact of green banking disclosure on firm value of Vietnamese commercial banks, including direct impact, indirect impact through operating cost, and impact under the moderator role of bad debt

1.4.2 Scope of research content

The scope of the doctoral thesis will focus on the direction impact of green banking disclosure on the firm value of Vietnamese commercial banks At the same time, the doctoral thesis will be limited to the moderating role of bad debt and the mediator role

of operating costs to clarify the role and how these factors affect the relationship between green banking disclosure and firm value of Vietnamese commercial banks

1.4.3 Scope of research on space

The research sample includes 20/24 Vietnamese joint stock commercial banks listed

on the stock exchange in Vietnam

1.4.4 Scope of research on time

The doctoral thesis conducts research in the period from 2010 to 2022

1.5 Research methodologies and data

1.5.2.1 For the first research objective

- Disclosure Index Studies: To score the green banking disclosure of listed

Vietnamese commercial banks in the period 2010-2022

- Artificial Intelligence Measurement of Disclosure (AIMD): to re-measure the status

of green banking disclosure of Vietnamese commercial banks to ensure the stability

of the research results

- Panel Regression: The study used to estimate the model to test the hypothesis set

for the first objective

1.5.2.2 For the second research objective

- Panel data regression analysis method combined with the moderation analysis model according to Baron and Kenny (1986): to analyze the relationship between

independent variables and dependent variables, in which the moderation variable

is a third variable affecting the relationship between independent variables and

dependent variables

- Bayesian method: The Bayesian method can represent the probability of the

positive and negative effects of parameters and therefore provide more information than the traditional frequency method Thanks to that, the doctoral thesis verifies the stability of the second research objective

1.5.2.3 For the third research objective

- The panel data regression analysis method is combined with the mediation analysis model according to Baron and Kenny (1986) It is a statistical method used to test

the relationship between two variables and the effectiveness of the mediating variable in explaining this relationship

- Bayesian method: to test the stability of the mediation effect

1.6 Research contributions

The doctoral thesis focuses on several important aspects related to the impact of green banking disclosure on firm value

First, the doctoral thesis clarifies that operating costs intervene in the relationship

between green banking disclosure and firm value, using the mediation analysis method

of Baron and Kenny (1986) together with the Sobel test to determine the indirect effect

Second, the doctoral thesis also considers bad debt as a moderator in the context of

Vietnam, different from previous studies that only consider bad debt as an interaction variable The moderator analysis will help to clarify this impact

Third, the doctoral thesis provides further evidence on the relationship between green

banking disclosure and firm value in emerging markets, such as Vietnam, compared

to previous studies that mainly focused on developed economies

Fourth, this is the first study in Vietnam to use artificial intelligence to measure the

level of green banking disclosure, allowing big data analysis and improving the reliability of research results

1.7 Significance of the study

1.7.1 Scientific significance

The doctoral thesis aims to provide empirical evidence on the impact of green banking disclosure on the firm value of listed commercial banks in Vietnam At the same time, the doctoral thesis contributes to providing another perspective on the relationship between green banking disclosure and firm value of commercial banks: the study examines the indirect impact of operating costs and the moderating effect of bad debt

on this relationship

1.7.2 Practical significance

After successful research, the doctoral thesis will provide more information and

scientific basis for decision-makers to refer to Firstly, the disclosure of green banking

information is not only to meet management requirements but also to enhance firm value and promote commercial banks to proactively disclose information, thereby supporting Vietnam to implement international commitments on environmental

protection Secondly, requiring the disclosure of green banking information without

accompanying bad debt improvement and cost optimization will not create prestige

for banks Thirdly, it is possible to expand the research on other mediator and

moderator factors affecting the relationship between green banking disclosure and

firm value Fourthly, the results of the doctoral thesis can be applied to other related

studies

1.8 The structure of the study

In addition to the Appendix and List of References, this doctoreal thesis is divided into

5 chapters:

Chaper 1: Introduction

Chaper 2: Theoretical framework and literature review on firm value, green banking

disclosure and bad debt

Chaper 3: Research methodology

Chaper 4: Research results

Chaper 5: Conclusions and policy implications

CHAPTER 2 THEORETICAL FRAMEWORK AND LITERATURE REVIEW ON FIRM VALUE, GREEN BANKING DISCLOSURE AND

BAD DEBT 2.1 Overview of concepts

2.1.1 Firm value

2.1.1.1 Concept of firm value

Firm value is often divided into two types: intrinsic value and market value

(1) Intrinsic value: This is the true value of the business, not affected by short-term fluctuations in the market According to Graham & Dodd (1934), this value is based on fundamental factors such as cash flow, profits, and assets, valued through methods such as dividend valuation and discounted cash flow (DCF) Intrinsic value reflects the level that an impartial analyst estimates for the company

(2) Market value: This is the price of a company's shares in the financial market, which can fluctuate greatly due to psychological factors and new information This value

is determined by the total market value of equity and liabilities Schweser (2020) defines market value as the price at which an asset can be bought or sold in the market

Intrinsic value is considered to be the inner core, while market value fluctuates around

it According to efficient market theory, these two values tend to converge Valuation

of a firm is important for the decisions of stakeholders, including management and shareholders, and should be done carefully and fairly to accurately reflect the value of the firm

2.1.1.2 Methods of determining firm value

The study chooses Tobin's Q to determine the firm value of listed commercial banks

in Vietnam This choice is also consistent with the provisions of the Law on Enterprises

of Vietnam 2020 Clause c, Point 1, Article 165 of the Law on Enterprises of Vietnam

2020 requires the Board of Directors to work based on the interests of shareholders; therefore, the effectiveness of governance can be measured by the market price of the

bank In contrast, the market price of the bank reflects the expectations and assessments of shareholders about the management activities of the bank Therefore, the market value of the bank, or the value of shareholders' assets, is an effective criterion in financial management

2.1.1.3 Factors affecting firm value

There are many factors affecting the value of firms; the thesis will focus on clarifying the main and most common factors to create a basis for selecting control variables for the research model

(i) Capital structure of the firm

(ii) Firm size

(iii) Business management capacity of the firm

(iv) Business performance and growth trend of the firm

(v) Dividend policy of the firm

(vi) Group of factors belonging to the general business environment of the firm

2.1.2 Green banking

2.1.2.1 Theoretical perspective on green banking

Green banking is an internal and external activity of the bank that is environmentally oriented, aiming to protect the environment from negative impacts, thereby achieving the bank's environmental goals According to this perspective, banks simultaneously carry out green activities within the bank, such as using paperless banking, environmental training, using energy-saving equipment, and building green buildings, and activities outside the bank that are also environmentally oriented, such as applying green lending and providing low interest rates to consumers and businesses for environmental projects From there, through these practices, banks can achieve their environmental goals

2.1.2.2 Green banking implementation practices

Green banking was first introduced in the early 1990s but gained more prominence after the United Nations set the sustainable development goals Organizations such as UNDP, UNEP, the World Bank, and many national and international banks are working to promote this initiative However, there is no specific and comprehensive definition of green banking According to Suborna (2020), green banking can be understood as an environmentally friendly bank that incorporates green policies into its internal and external operations, either voluntarily or compulsorily Green banking

is not only about financing green projects but also about committing to environmental initiatives in all organizational decisions, including internal and external activities towards the environment

2.1.3 Green banking disclosure

2.1.3.1 Concept of green banking disclosure

In this doctoral thesis, green banking disclosure is understood as public disclosure of green banking activities This information will be approached in the Annual Report of the bank - this can be considered as a source of information that satisfies the public disclosure condition of the concept of green banking disclosure

2.1.3.2 Building a green banking disclosure index

To construct a disclosure index, especially a green bank disclosure index, the first important thing is to select the information items that make up the index Due to the large amount of information that can be disclosed, researchers need to identify specific information items to include in the index Currently, there is no unified theory for constructing disclosure indexes, and the approach often depends on the research purpose According to Marston & Shrives (1991), there are two ways to construct an index: (1) to construct a set of disclosure criteria based on good practices and previous studies, or (2) to use available criteria from previous studies without adjustment This doctoral thesis does not aim to develop a new green banking disclosure index but will evaluate the existing green banking disclosure of commercial banks Therefore, the doctoral thesis will apply the second approach, based on available criteria for green banking disclosure Research and regulations of countries on disclosure criteria related

to green banking activities (Table 2.9) show that there are 10 criteria that receive over 50% consensus, including carbon emissions, renewable energy, water saving, paper saving, waste treatment, use of environmentally friendly materials, infrastructure, green business products, requirements for suppliers, and policy regulations on green operations

2.1.4 The moderator role of bad debt

According to Baron and Kenny (1986), a moderator is a variable that changes the strength or direction of the relationship between the independent variable and the dependent variable, determining the conditions under which the relationship becomes stronger or weaker A moderator does not directly cause a change in the dependent variable but affects the way the independent variable affects the dependent variable (Figure 2.2)

In this context, bad debt is defined in Circular 11/2021/TT-NHNN as debts in groups

3, 4, and 5 Bad debt has a direct impact on the reputation, profitability, and solvency

of the bank If the bank has a high bad debt ratio, green banking disclosure can enhance investor confidence and improve firm value On the contrary, with a low bad debt ratio, the impact of green banking disclosure on firm value may be insignificant, because investors already have confidence in the bank Therefore, bad debt plays a moderator role, affecting the level of impact of green banking disclosure on firm value

Figure 2.1 Baron and Kenny (1986) moderator model

Source: Baron and Kenny (1986)

Outcome Variable

Predictor Moderator

Predictor x Moderator

2.1.5 The mediator role of operating costs

According to Baron and Kenny (1986), the mediator variable is the bridge between the independent variable and the dependent variable, explaining how the independent variable affects the dependent variable (Figure 2.3)

Figure 2.2 Baron and Kenny (1986) mediator model

Source: Baron and Kenny (1986)

In this study, operating costs are defined in Circular 49/2014/TT-NHNN of the State Bank of Vietnam as costs incurred in the production and business activities of banks Operating costs can play an mediator role in the relationship between green banking disclosure and firm value Specifically, implementing green banking disclosure may require banks to spend large amounts on transparency and regulatory compliance, leading to increased operating costs and reduced short-term profits However, if banks manage these costs effectively, firm value can be improved in the long term thanks to increased profits and investor confidence

2.2 2.2 Theoretical frameworks

2.2.1 Theories explaining the impact of green banking disclosure on firm value

The relationship between green banking disclosure and firm value of banks in particular and of enterprises in general is often based on theoretical foundations such as: (1) Asymmetric information theory, (2) Signaling theory, (3) Agency theory, (4) Stakeholder theory, (5) Legitimacy theory, (6) Impression management theory In general, firm disclosure in general will send positive signals to stakeholders to reduce information asymmetry, thereby narrowing the gap in legitimacy and demonstrating impression management, resulting in increased long-term potential value of the bank

In other words, to combat information asymmetry - one of the causes of conflicts of

Dependent variable

Independent variable

Mediator variable

interest between firm representatives and stakeholders, non-financial performance disclosure is one of the increasingly popular methods used by businesses around the world (Bose et al., 2018) Accordingly, with the increase in firm disclosure, it shows that businesses are trying to send signals to meet the expectations of investors, authorities and many other stakeholders (Guthrie & Abeysekera, 2006) that the business activities are "legal", always within limits, not harmful to society At the same time, with the environment becoming a global concern, a series of stakeholders affected by environmental pollution, showing that businesses care about the environment is a new direction for businesses, creating a special impression in the minds of consumers

With the environment becoming a global concern, a wide range of stakeholders are affected by environmental pollution; if an organization's operations harm the environment in any way, the legitimacy of the organization may be threatened, and a legitimacy gap may appear (Dewan et al., 2016) In this case, green banking disclosure

by commercial banks in Vietnam will send a positive signal to stakeholders to reduce information asymmetry, thereby narrowing the legitimacy gap and demonstrating impressive management, resulting in increased long-term potential value of the bank

2.2.2 Theories explaining the impact of bad debt on the impact of green banking disclosure and firm value

With a higher NPL ratio, the bank's reputation in the market is eroded, and a large part

of the bank's loans are difficult to collect Green banking disclosure can help increase investor confidence, thereby improving the bank's reputation, and the bank's firm value

in the eyes of investors is still highly appreciated On the contrary, if the bank has a low NPL ratio, green banking disclosure may not have a significant impact on firm value, because investors already have a certain amount of confidence in the bank Therefore, within the banking sector, bad debt can play a moderator role because it controls and adjusts the level of influence of green banking disclosure on firm value

In other words, bad debt acts as a limiting factor, reducing or limiting the positive impact of other factors on the bank's firm value by creating obstacles to reputation, profitability, and liquidity