The The influence of sustainability disclosure in the environmental dimension on the performance of listed companies on the Stock Exchange of Thailand.

Abstract

This study examines the influence of sustainability disclosure in the environmental dimension on the performance of listed companies on the Stock Exchange of Thailand. Performance indicators used included environmental expenses, return on assets (ROA), return on equity (ROE), and enterprise value ratio (Tobin’s Q).The sample comprised 312 companies listed on the Stock Exchange of Thailand that disclosed environmental information and reported environmental expenses from 2021 to 2023, excluding financial companies and mutual funds. Data were collected from secondary sources, including annual reports, Form 56-1, sustainability reports, and the SETSmart database. The data were analyzed using descriptive statistics and inferential statistics through multiple regression analysis.

The findings indicated that the disclosure of environmental sustainability information has a significantly positive relationship with the return on equity (ROE) but a significantly negative relationship with the firm's value (Tobin's Q). This suggests that disclosing environmental sustainability information can create both positive and negative corporate images. A positive corporate image can enhance operational performance through stakeholder confidence and strengthen the organization’s competitiveness sustainably. However, high environmental expenses, expressed in monetary terms, such as electricity costs, fuel and oil expenses, and water usage costs, can negatively impact the corporate image. This may be due to the high environmental expenses reflecting substantial usage of natural resources. Therefore, organizations should operate with a strong awareness of their social responsibility to environmental conservation and prioritize the efficient use of natural resources. Proper water resource management, reduction of greenhouse gas emissions, and efficient energy use should be consistently emphasized to ensure sustainable development.