Green Corporate Governance, CSR Disclosure, and Financial Reporting Quality: Evidence From an Emerging Economy

ABSTRACT

This study examines the relationship between green corporate governance, defined as firms' green mindsets and strategies as well as organizational arrangements that embed social responsibility into top‐level design, corporate social responsibility (CSR) disclosure, and financial reporting quality (FRQ) using a sample of 608 Vietnamese listed non‐financial firms from 2016 to 2024 and applying the fixed‐effects and system GMM estimations. The empirical evidence shows several notable findings. First, green corporate governance is positively associated with FRQ. Second, CSR disclosure has a positive effect on FRQ. Third, firms with stronger green corporate governance tend to disclose more CSR information. Finally, CSR disclosure mediates the relationship between green corporate governance and FRQ. Therefore, green corporate governance not only directly improves FRQ but also indirectly enhances FRQ through greater CSR disclosure. Overall, this study extends the literature on corporate governance, sustainability disclosure, and FRQ by offering new evidence from an emerging economy.