Credit growth and bank stock returns: The moderating role of financial reporting opacity in Vietnamese commercial banks

Abstract

This study examines the moderating role of financial reporting opacity in the relationship between credit growth and stock returns among Vietnamese commercial banks. Using data from 19 Vietnamese commercial banks over the period 2006-2024 and applying the generalized least squares (GLS) regression method, the findings indicate that credit growth has a positive effect on stock returns, while higher levels of financial reporting opacity weaken this positive relationship. The results provide important policy implications, highlighting the need to enhance financial transparency to improve stock performance in the Vietnamese commercial banking sector.