THE COST OF DEBT AS A TRANSMISSION MECHANISM BETWEEN ESG PERFORMANCE, GREENHOUSE GAS EMISSIONS, EXECUTIVE COMPENSATION, AND INVESTMENT OPPORTUNITIES
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Abstract
This study aimed to examine: (1) the effects of ESG performance, greenhouse gas emissions, and executive compensation on investment opportunities; (2) the effects of these factors on the cost of debt; (3) the effect of the cost of debt on investment opportunities; and (4) the indirect effects of ESG performance, greenhouse gas emissions, and executive compensation on investment opportunities through the cost of debt.
This study employed a quantitative research design, drawing on ESG concepts, stakeholder theory, agency theory, and capital structure theory as its theoretical framework. The sample consisted of 215 firm-year observations of companies listed on the Stock Exchange of Thailand that disclosed ESG data in the Bloomberg database during 2020–2023 selected by purposive sampling. Data were collected using
a secondary data recording form from Bloomberg, SETSMART, One Report, and financial statements. The data were analyzed using descriptive statistics, Pearson correlation analysis, and path analysis. The findings revealed that: 1) ESG performance, greenhouse gas emissions, and executive compensation had positive effects on investment opportunities; 2) ESG performance had a negative effect on the cost of debt, whereas greenhouse gas emissions and executive compensation had no significant effects on the cost of debt; 3) the cost of debt had a negative effect on investment opportunities and 4) The cost of debt acts as a partial transmission variable between ESG and investment opportunities. The knowledge gained from this research indicated that ESG performance serves as a financial mechanism that reduces the cost of debt and enhances firms’ investment potential. These results offer practical implications for listed companies in formulating sustainability strategies and managing capital structure to support long-term growth.
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References
ชญาณดา ชวะวิทย์, ภวัต บุณยธนาศิริ, ศิริวรรณ จตุสัตถาพร, สุรัญชนา วงศ์ประเสริฐ, สุพรรษา พิกุลทอง และทาริกา แย้มขะมัง. (2566). ความสัมพันธ์ระหว่างความรับผิดชอบด้านสิ่งแวดล้อม สังคม และบรรษัทภิบาลขององค์กร (ESG) กับมูลค่ากิจการของบริษัทที่จดทะเบียนอยู่ในตลาดหลักทรัพย์แห่งประเทศไทย. วารสารศิลปศาสตร์และอุตสาหกรรมบริการ, 6(2), 202–221.
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