Relationship between Environmental, Social and Governance (ESG) and Financial Performance of Companies in Agro & Food Industry of the Stock Exchange of Thailand
Keywords:
ESG Performance, Sustainable Development, Financial Performance, Stock Exchange of ThailandAbstract
This study examined the relationship between environmental, social and governance (ESG) performance and financial performance of 60 companies of agricultural & food industry in the Stock Exchange of Thailand (SET). The data were gathered from “the 56-1 One Report” of SET database in which the accounting period ended on December 31, 2021, by using regression technique for investigation. The results of the study revealed that the environmental, social and governance (ESG) performance and the financial performance of companies in the agricultural and food industry groups are positively related and consistent with the hypotheses.
References
ตลาดหลักทรัพย์แห่งประเทศไทย (2567). SET ESG Ratings, สืบค้น 28 มีนาคม พ.ศ 2567, จาก https://setsustainability.com/ESG-ratings
Barnett, M. L. & Salomon, R. M. (2012). Does it pay to be really good? addressing the shape of the relationship between social and financial performance. Strategic Management Journal, 33(11), 1304–1320.
Ermakova, E. P. & Vildanova, M. M. (2022). ESG Banking: A Fundamental Component of Sustainable Development, or Development Without Prejudice to the Future of Russia, Geo-Economy of the Future. New York: Springer.
Finger, M. & Rosenboim, M. (2022). Going ESG: The economic value of adopting an ESG policy. Sustainability, 14(21), 13917.
Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. New York Times Magazine, 173–178.
Fu, T. & Li, J. (2023). An empirical analysis of the impact of ESG on financial performance: the moderating role of digital transformation. Front. Environ. Sci, 11, 1256052. https://doi.org/10.3389/fenvs.2023.1256052
Galant, A. & Cadez, S. (2017). Corporate social responsibility and financial performance relationship: a review of measurement approaches. Economic Research-Ekonomska Istraživanja, 30(1), 676–693. doi: 10.1080/1331677X.2017.1313122.
Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: a risk management perspective. The Academy of Management Review, 30(4), 777-798.
Hou, M., Liu, H., Fan, P., & Wei, Z. (2016). Does CSR Practice Pay off in East Asian Firms? A Meta-Analytic Investigation. Asia Pacific Journal of Management, 33, 195-228. https://doi.org/10.1007/s10490-015-9431-2
Huijgevoort, J. V. (2017). The relationship between ESG-factors and the corporate financial performance. A study for European small capitalization firms. (Master Thesis). Netherland: Universiteit Van Tilburg.
Inderst, G. & Stewart, F. (2018). Incorporating Environmental, Social and Governance (ESG) Factors into Fixed Income Investment. Washington: World Bank Group publication.
Jensen, M. C. (2002). Value Maximization, Stakeholder Theory, and The Corporate objective Function. Business Ethics Quarterly, 12(2), 235–256.
Kumar, P. & Firoz, M. (2022). Does Accounting-based Financial Performance Value Environmental, Social and Governance (ESG) Disclosures? A detailed note on a corporate sustainability perspective. Australasian Business, Accounting and Finance Journal, 16(1), 41–72.
McGuire, J. B., Sundgren, A., & T. Schneeweis. (1988). Corporate Social Responsibility and Firm Financial Performance. Academy of Management Journal, 31(4), 854–872.
McWilliams, A. & Siegel, D. (2000). Corporate Social Responsibility and Financial Performance: Correlation or Misspecification?. Strategic Management Journal, 21(5), 603–609.
Okafor, A., Adeleye, B. N. & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from U.S tech firms’. Journal of Cleaner Production, 292, 126078. doi: 10.1016/j.jclepro.2021.126078.
Palmer, K., Oates, W. E., & Portey, P.R., (1995). Tightening environmental standards: the benefit-cost or the no-cost paradigm?. Journal of Economic Perspectives, 9(4), 119-132.
Ramić, H. (2019). Relationship between ESG performance and financial performance of companies: an overview of the issue. (Master Thesis). Switzerland: University of Lausanne.
Siwiec, K. & Karkowska, R. (2024). Relationship between ESG and Financial Performance of Companies in the Central and Eastern European Region. Central European Economic Journal, 11(58), 178-199.
Tamimi, N. & Sebastianelli, R. (2017). Transparency among S&P 500 companies: an analysis of ESG disclosure scores. Management Decision, 55(8), 1660–1680.
Wang, Z., & Sarkis, J. (2017). Corporate social responsibility governance, outcomes, and financial performance. Journal of Cleaner Production, 162, 1607-1616.
William, J. (1991). Perfect Markets and Easy Virtue: Business Ethics and the Invisible Hand (Mitsui Lectures in Economics). Oxford: Blackwell.
Xu, Y. & Zhu, N. (2024). The Effect of Environmental, Social, and Governance (ESG) Performance on Corporate Financial Performance in China: Based on the Perspective of Innovation and Financial Constraints. Sustainability, 16(8), 3329. https://doi.org/10.3390/su16083329
Wei, Y & Zhu, B. (2023). How Does ESG Impact Firms’ Financial Performance: Empirical evidence from European companie. (Master Thesis). Sweden: Lund University
Zahid, R. M. A., Khan, M. K., Anwar, W., & Maqsood, U. S. (2022). The role of audit quality in the ESG-corporate financial performance nexus: Empirical evidence from Western European companies. Borsa Istanbul Review, 22(2), 200–S212.
Zhang, D., Wang, C., & Dong, Y. (2023). How Does Firm ESG Performance Impact Financial Constraints? An Experimental Exploration of the COVID-19 Pandemic. The European Journal of Development Research, 35(1), 219–239.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Faculty of Management Science Pibulsongkram Rajabhat University
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
บทความที่ได้รับการตีพิมพ์ในวารสารวิทยาการจัดการมหาวิทยาลัยราชภัฏพิบูลสงคราม เป็นลิขสิทธิ์ของมหาวิทยาลัยราชภัฎพิบูลสงคราม
บทความที่ลงพิมพ์ใน วารสารวิทยาการจัดการมหาวิทยาลัยราชภัฎพิบูลสงคราม ถือว่าเป็นความเห็นส่วนตัวของผู้เขียนคณะบรรณาธิการไม่จำเป็นต้องเห็นด้วย ผู้เขียนต้องรับผิดชอบต่อบทความของตนเอง
