The Impact of Institutional Investors on the Relationship between Environmental, Social and Governance Disclosure and Financial Performance of Companies in Agro and Food Industry Listed on the Stock Exchange of Thailand
DOI:
https://doi.org/10.14456/ajmt.2025.1Keywords:
Institutional Investors, Financial Performance, Environmental Social and GovernanceAbstract
This study aims to (1) examine the relationship between Environmental, Social, and Governance (ESG) disclosure and financial performance, and (2) investigate the impact of institutional investors on the relationship between ESG disclosure and financial performance of companies in Agro and Food Industry listed on the Stock Exchange of Thailand. The study utilized secondary data collected from financial statements during 2018-2022, obtained from the SETSMART online database and annual reports, comprising 282 observations. The research employed descriptive statistics, correlation analysis, and multiple regression analysis. The findings revealed that ESG disclosure, measured by ESG100 rankings, had a statistically significant negative relationship with financial performance measured by return on equity at the 0.05 level. Furthermore, the interaction effect between ESG disclosure (measured by ESG100 rankings) and institutional investors showed a statistically significant negative impact on financial performance measured by firm value at the 0.05 level. These findings can support investment decision-making in companies with ESG disclosures, particularly when institutional investors play a significant role in such companies.
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