The Impact of ESG Sustainability Standards on The Financial Performance of Listed Real Estate Companies in Vietnam

Abstract

This research was conducted on 52 Vietnamese real estate companies listed on the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) during the period 2022-2025, with a total of 156 observations, to examine the impact of Environmental, Social and Governance (ESG) standards on financial performance. Return on Assets (ROA) is used as the indicator to measure financial performance, while control variables, including company size (SIZE), company age (AGE), financial leverage (LEV), and dividend payout ratio (DIVI), are included in the model. The data were analyzed using Stata 17, employing ordinary least squares (OLS) regression, the Fixed-Effects Model (FEM), the Random-Effects Model (REM), the feasible generalized least squares (FGLS) estimation method, and diagnostic tests. The results indicate that ESG implementation negatively affects the operational performance of listed real estate companies in Vietnam during 2022-2025. The research findings are expected to provide important empirical evidence, contributing to guiding companies in optimizing their ESG strategies, while also supporting regulatory bodies and investors in formulating long-term and short-term ESG policies for the real estate sector in Vietnam.