The impact of corporate bond issuance policy on business performance: Evidence from agricultural import and export companies in Vietnam

Abstract

This study analyses the effect of corporate bond issuance on the business performance of 63 listed agricultural import and export firms in Vietnam over the 2014-2023 period, using return on assets (ROA) and return on sales (ROS) as performance indicators. A multivariate regression model is developed, using the dummy variable BOND as a proxy for the period during which stringent requirements for the disclosure of bondrelated information under Vietnamese Government Decree 163/2018/ND-CP, dated 4 December 2018 and effective from 1 February 2019, were in force. The empirical results reveal that increased transparency requirements are negatively and statistically significantly associated with both ROA and ROS. Conversely, firm size and liquidity are positively associated with business performance. The findings show that firms face short-term profitability pressures when complying with new disclosure requirements, highlighting the urgent need to strengthen the regulatory framework governing transparency in bond-related information disclosure and to stimulate the development of credit rating services in order to support the sustainable development of the corporate debt market.