Title:
Environmental, Social and Governance (ESG) and Performance of Real-estate Firms in Vietnam: The Moderating Roles of Size, Leverage, and Fixed Assets

Authors:
Thi Lam Anh Nguyen, Thi Thu Trang La, Viet Nam

Abstract:

This study investigates the impact of environmental, social, and governance (ESG) practices on real estate firms’ financial performance in Vietnam from 2014 to 2023, focusing on how firm size, leverage, and fixed assets moderate this relationship. Using a panel dataset of listed real estate companies and applying Feasible Generalized Least Squares (FGLS) estimation, we find that ESG engagement exhibits a negative association with return on equity (ROE) overall. However, the results also reveal that firm-specific characteristics moderate this relationship significantly. Specifically, larger firms and those with lower leverage levels experience a less negative or even neutral effect of ESG on performance, while firms with higher fixed asset intensity tend to suffer greater performance decline. These findings underscore the importance of firm structure in ESG implementation. This study contributes to the growing body of literature on ESG in emerging markets and offers practical insights for managers, investors, and policymakers seeking to align sustainability with financial performance in the real estate sector.

DOI: https://doi.org/10.51505/IJEBMR.2025.9613