Corporate social responsibility and governance structure impact the financial distress risk of consumer goods companies in Vietnam

Abstract:

Research on 34 Vietnamese consumer goods businesses from 2012 to 2022 has shown a positive relationship between the social responsibility index (CSR) and the Z-Score index, indicating that CSR activities help reduce risks. bankruptcy risk. The distinction between the positions of Chairman of the Board of Directors and CEO has a similar positive effect on Z-Score, emphasizing the role of corporate governance in influencing a company’s bankruptcy risk. Other factors such as large scale, high profitability and high cash ratio all have a positive impact on Z-Score. However, the financial leverage variable has the opposite effect, highlighting the importance of carefully managing financial leverage to prevent bankruptcy risk.