Assessing the impact of environmental, social, and governance practices on bond issuance by real estate companies

Abstract

The study aims to assess the impact of environmental, social, and governance (ESG) practices on bond issuance by listed real estate companies in Vietnam. Using panel data from listed companies on the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX), the study estimates a pooled logit model with fixed-year effects and robust cluster-standard errors. Two models are estimated, including simultaneous ESG and one-year-lag ESG. The results show that ESG has a positive and statistically significant impact on the probability of bond issuance in both models. These findings suggest that ESG may not only serve as an immediate signal of transparency and governance quality but also as a reputational asset that improves companies’ access to the bond market over time. Based on this, several recommendations are offered for businesses in Vietnam, along with directions for further research.