The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

My evaluations for the article titled "The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market" are presented below.

1-The selected research topic is quite current. It has the potential to be interesting to the readers of your journal.

2-The importance of the research topic and the contribution of the article to the previous literature are explained in detail.

3-As a result of a detailed examination of the previous literature, a research gap was identified. and the hypotheses of the study were created. However, especially in creating the second hypothesis, the subscript of the variable representing environmental information disclosure needs to be reconsidered. because the hypothesis was established as "the level of environmental accounting information disclosure has an inverse effect on the financial risk of the company in the following year.

4-When the study was examined in terms of methodology, the panel data regression procedure was chosen to test the two main hypotheses determined in the study. In this section, first of all, how the independent variable is calculated can be explained in more detail to the readers. For example, an example of this calculation can be given for a selected company. Additionally, it should be noted that heteroskedasticity, cross-sectional and serial correlations are important problems in the error terms of panel regression models. however, only two of these issues were considered in the current study. In addition, it should be detailed why the Feasible Generalized Least Squares (FGLS) estimator was considered in terms of the reliability of the results. When the regression results were examined, it was observed that there was a negative and significant relationship between financial risk and environmental disclosures, that is, as environmental disclosures increased, financial risk decreased.

5- Following panel data analyses, researchers employed Independent-samples T-test to identify the difference in financial risk and environmental information disclosures between the two groups of companies. Based on the findings, there are significant differences between the two groups in terms of both financial risk and environmental disclosures.

6- The findings of the study were explained in detail in the conclusion section and policy recommendations were made. Additionally, suggestions for future studies are given.

7- However, when the study is evaluated in general, I must state that the article needs some improvements, as stated above. Ultimately, I believe that these improvements can increase the value of the article.

Author Response

RESPONSE TO REVIEWERS

Manuscript title: The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market

We highly appreciate your comments and contributions. The following table is our repones.

Reviewer 01’s comments	Response
1.    The subscript of the variable representing environmental information disclosure needs to be reconsidered, because the hypothesis was established as "the level of environmental accounting information disclosure has an inverse effect on the financial risk of the company in the following year.	1.    For the variable ENVIt-1, the subscript (t-1) indicates a one-year time lag compared to other variables. This means that the level of environmental information disclosed in the previous year affects the current year in the research model. Therefore, in terms of time, the level of environmental information disclosure this year will impact the financial risk in the following year. That is the idea of us.
2.    When the study was examined in terms of methodology, the panel data regression procedure was chosen to test the two main hypotheses determined in the study. In this section, first of all, how the independent variable is calculated can be explained in more detail to the readers. For example, an example of this calculation can be given for a selected company. Additionally, it should be noted that heteroskedasticity, cross-sectional and serial correlations are important problems in the error terms of panel regression models. however, only two of these issues were considered in the current study. In addition, it should be detailed why the Feasible Generalized Least Squares (FGLS) estimator was considered in terms of the reliability of the results. When the regression results were examined, it was observed that there was a negative and significant relationship between financial risk and environmental disclosures, that is, as environmental disclosures increased, financial risk decreased.	3.    We have provided an illustrative example to facilitate understanding of the calculation of the level of environmental accounting information disclosure for readers (shown in table 4). 4.    We have supplemented the Pesaran test results for the issue of cross-correlation in the model.

 

Author Response File: Author Response.docx

Reviewer 2 Report

Comments and Suggestions for Authors

I find the manuscript interesting. The authors actually identified the research gap and filled it with research. The empirical research itself and the conclusions are valuable. However, there is a lack of good literature discussion. The authors should reinforce it in the "Theoretical Background" section. Valuable theories were not shown and their importance in the context of the identified gap was not discussed. The "Theoretical Background" part is too short (less than a page!!!) to make a clear argument that it is a theoretical background! This part requires improvement and a solid theoretical introduction of at least several dozen items of literature, indicating connections with the gap (what was researched and who and why there is a research gap).

Author Response

RESPONSE TO REVIEWERS

Manuscript title: The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market

We highly appreciate your comments and contributions. The following table is our repones.

Reviewer 02’s comments

Response

1.     The authors should reinforce it in the "Theoretical Background" section. Valuable theories were not shown and their importance in the context of the identified gap was not discussed. The "Theoretical Background" part is too short (less than a page!!!) to make a clear argument that it is a theoretical background! This part requires improvement and a solid theoretical introduction of at least several dozen items of literature, indicating connections with the gap (what was researched and who and why there is a research gap).

1.     We have added some documents to strengthen the foundational theory.

Author Response File: Author Response.docx

Reviewer 3 Report

Comments and Suggestions for Authors

The manuscript titled "The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market" exhibits potential interest, but certain improvements are necessary for its acceptance in publication. The areas requiring refinement are outlined below:

Introduction:

Clearly elucidate the concepts of Environmental Accounting Information Disclosure and Financial Risk in the introduction, emphasizing their interrelationship.

Articulate why understanding this relationship is crucial for stakeholders and why management should prioritize it.

Explicitly state the significance of this study within the context of Vietnam, emphasizing the novelty and unique contributions.

Identify and address the research gap, presenting specific research questions and objectives.

Theoretical Contribution and Literature Review:

Begin with a discussion on the theoretical contribution before delving into the literature review.

Strengthen the literature review by incorporating more recent and relevant research papers, presenting them thematically.

Provide stronger arguments and support for hypotheses through a more comprehensive literature review.

Methodology:

Clearly define the concept of financial risk in the methodology section.

Endogeneity Control:

Acknowledge the necessity of addressing endogeneity in explaining the relationship and conduct a more robust analysis by controlling for endogeneity.

Robustness Check:

Perform additional analyses to provide a robustness check, enhancing the credibility and reliability of the results.

Results and Discussion:

After presenting the results, dedicate a separate section to discussion, delving into the implications and interpretations.

Discuss practical, theoretical, and policy implications arising from the study, providing a comprehensive understanding of the findings.

By addressing these key points, the manuscript can be elevated to meet the standards necessary for publication. Your attention to these aspects will enhance the clarity, rigor, and relevance of the research.

Comments on the Quality of English Language

Needs improvement to improve the quality.

Author Response

RESPONSE TO REVIEWERS

Manuscript title: The Impact of Environmental Accounting Information Disclosure on Financial Risk: The Case of Listed Companies in the Vietnam Stock Market

We highly appreciate your comments and contributions. The following table is our repones.

Reviewer 03’s comments	Response
1.     Introduction: ·      Clearly elucidate the concepts of Environmental Accounting Information Disclosure and Financial Risk in the introduction, emphasizing their interrelationship. ·      Articulate why understanding this relationship is crucial for stakeholders and why management should prioritize it. ·      Explicitly state the significance of this study within the context of Vietnam, emphasizing the novelty and unique contributions. ·      Identify and address the research gap, presenting specific research questions and objectives.	1.     We have supplemented the concepts of Environmental Accounting Information Disclosure, financial risks, and emphasized the relationship between them. 2.     We have identified and addressed research gaps. Specific research questions and objectives have been supplemented.
2.     Theoretical Contribution and Literature Review: ·      Begin with a discussion on the theoretical contribution before delving into the literature review. ·      Strengthen the literature review by incorporating more recent and relevant research papers, presenting them thematically. ·      Provide stronger arguments and support for hypotheses through a more comprehensive literature review.	1.     We have presented research literature on environmental accounting information disclosure grouped by examining its impact on business risks, its effects on bankruptcy or financial distress risks, and its influence on systemic risks.
2.     Methodology: ·      Clearly define the concept of financial risk in the methodology section.	We have done
3.     Endogeneity Control: ·      Acknowledge the necessity of addressing endogeneity in explaining the relationship and conduct a more robust analysis by controlling for endogeneity.	We have done
4.     Robustness Check: ·      Perform additional analyses to provide a robustness check, enhancing the credibility and reliability of the results.	We have done
5.     Results and Discussion: ·      After presenting the results, dedicate a separate section to discussion, delving into the implications and interpretations. ·      Discuss practical, theoretical, and policy implications arising from the study, providing a comprehensive understanding of the findings. ·      By addressing these key points, the manuscript can be elevated to meet the standards necessary for publication. Your attention to these aspects will enhance the clarity, rigor, and relevance of the research.	1.     The discussion section has been delved into and clarified further.

 

 

Author Response File: Author Response.docx

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

When the revised version of the study is examined, it is seen that the author or authors have made the suggested corrections to a great extent. Therefore, I believe that the present study on the relationship between disclosure of environmental accounting information and financial risk may be of interest to the readers and that it would be appropriate to accept the revised study for publication in your journal.

Reviewer 2 Report

Comments and Suggestions for Authors

The authors revised the manuscript. I believe it can be published in its current form. Their achievement is empirical research. The weaker point is the discussion and literature review.

Reviewer 3 Report

Comments and Suggestions for Authors

The authors have addressed all the issues. The revised version is now better than the previous erosion.