ESG Practices and the Profitability of Listed Real Estate Companies in Vietnam

Abstract

This paper evaluates the association between practicing environmental, social, and governance (ESG) standards and the profitability of listed real estate companies in Vietnam. Data are collected from real estate companies listed on the Ho Chi Minh and Hanoi Stock Exchanges during the period of 2018–2024. The research methodology utilizes panel regression models, including a pooled ordinary least squares model, and fixed and random effects models. To control for unobserved firm heterogeneity and year-specific shocks, the baseline model includes both firm and year fixed effects. The results show that ESG practices are not statistically and significantly associated with either the return on average assets or return on average equity, but are positively and significantly associated with accounting profitability. The findings suggest that ESG practices may not immediately improve accounting profitability for listed real estate companies in Vietnam, possibly due to the early stages of ESG implementation, initial compliance costs, and the long investment horizon of real estate projects.

View PDF – https://doi.org/10.53383/100427

Keywords

ESG, Profitability, Real Rstate Firms, Viet Nam