Green corporate governance and stock price crash risk: evidence from an emerging market

This study examines the effect of green corporate governance (GCG), defined as governance with a long-term social responsibility orientation towards environmental protection, as reflected in green vision, green strategy, and organizational arrangements for environmental oversight, on stock price crash risk (SPCR) in Vietnam. Using a panel of 665 non-financial listed firms from 2015 to 2023 and fixed-effects and system GMM estimations, we find that GCG is negatively associated with SPCR, indicating that stronger green-oriented governance reduces crash risk. This mitigating effect is stronger during the COVID-19 period, highlighting its role in enhancing market resilience.