ENVIRONMENTAL SENSITIVITY CONTEXT AND FIRM VALUE: THE JOINT EFFECTS OF GREEN ACCOUNTING AND CORPORATE GOVERNANCE

Abstract

This research examines the impact of green accounting and corporate governance mechanisms on the firm value of companies listed on Vietnam’s stock market, aiming to address a key research gap in emerging economies by integrating environmental transparency and internal governance into a unified framework. Using a quantitative approach, the research analyzes a balanced panel dataset of 232 firms over the period 2020-2024, applying the feasible generalized least squares (FGLS) method to ensure robust results. Additionally, a sub-sample analysis is conducted by dividing firms into environmentally sensitive and non-sensitive industries to explore how sectoral characteristics influence these relationships. The findings indicate that green accounting has a positive and statistically significant effect on firm value, measured by Tobin’s Q and market-to-book ratio. In terms of corporate governance, ownership concentration, foreign ownership, and board gender diversity contribute positively to firm value, while CEO duality shows a favorable effect on Tobin’s Q. Notably, the impact of green accounting is substantially stronger for firms operating in environmentally sensitive industries, whereas the effect is weaker or insignificant in non-sensitive sectors. These results suggest that green accounting can serve as a strategic signal of long-term sustainability for investors, while policymakers are encouraged to promote mandatory environmental reporting, particularly in high-impact industries. Overall, the study provides new evidence on how environmental and governance factors jointly shape firm value in an emerging market context.