The Influence of Continuous Environmental Social and Cooperate Governance (ESG) Responsibilities Disclosure on the Performance and Sustainable Growth of Sustainable Stocks Listed on the Stock Exchange of Thailand

Main Article Content

Ubonwan Khunthong
Boontham Racharak
Pawrin Rattanapian
Niwarat Wijitkusawat

Abstract

The purpose of this study was to investigate the influence of continuous environmental social and corporate governance (ESG) responsibilities disclosure on the performance and sustainable growth of sustainable stocks listed on the Stock Exchange of Thailand. The quantitative research method was employed, using panel data collected over the past five years since 2019 to 2023 from financial reports and Form 56-1.  The purposive sampling was used to select the target group consisted of 166 companies ranked by the Stock Exchange of Thailand as sustainable stocks for the year 2023, with complete and accurate financial data, totaling 830 financial statements. The data analyses were Levin, Lin & Chu (LLC) stationary test and Fixed Effect Regression. The results showed that the continuous disclosure of corporate governance report (CGR) had a negative influence on performance and sustainable growth significantly at the .01.

Article Details

Section
บทความวิจัย (Research article)

References

Adiputra, IG. & Hermawan, A. (2020). The effect of corporate social responsibility, firm size, dividend policy and liquidity on firm value: Evidence from manufacturing companies in Indonesia. International Journal of Innovation, Creativity and Change, 11(6), 325-338. https://doi.org/10.32400/ja.24760. 8.2.2019.91-101

Alareeni, B. A. & Hamdan, A. (2020). ESG impact on performance of US S&P 500-listed Firms. Corporate Governance, 20(7), 1409-1428. https://doi.org/10.1108/CG-06-2020-0258

Bai, X., Han, J., Ma, Y. & Zhag, W. (2022). ESG performance, institutional investors’ perference and financing constrainsts: Empirical evidence from China. Borsa Istanbul Review, 22(S2), S157-S168. https://doi. org/10.1016/j.bir.2022.11.013

Bhaskaran, R. K., Ting, I. W. K., Sukumaran, S. K. & Sumod, S. D. (2020). Environmental, social and governance initiatives and wealth creation for firms: An empirical examination. Managerial and Decision Economics, 41(5), 710-729. https://doi.org/10.1002/mde.3131

Bubpha, P. (2020). An Influence of Role of Stakeholders in Asean CG Scorecard Disclosures on Environment Disclosures from Listed Companies in the Stock Exchange of Thailand on the Environmentally Sensitive Insustries (Unpublished Master’s thesis). Prince of Songkla University, Songkla, Thailand.

Chitlaoarporn, C., Thirasirikul J. & Suksermsongchai, S. (2021). Sustainable Development and the World Economic Change. Thai Research and Management Journal, 2(3), 77-93. https://so05.tci-thaijo.org/ index.php/TRDMJOPOlSU/article/download/254525 /171929

Chuamaungphan, O. & Chuacoo, M. (2020). The Analysis of Causal Factors Influencing Sustainable Growth of Listed in the Stock Exchange of Thailand: Real Estate and Construction Business Group. Journal of Legal Entity Management and Local Innovation, 6(4), 1-13. https://so04.tci-thaijo.org/index.php/jsa-journal/article/view/241291

Devi, P. & Sapna. (2024). Relationship of ESG Scores with Firm Performance: A Study of Indian Listed Companies. IMIB Journal of Innovation and Management, 2(2), 243-255. https://doi.org/10.1177/ jinm.241242865

Duque, E. & Caracuel, A. J. (2021). Environmental, social and governance (ESG) scores and financial performance of multilatinas: Moderating effects of geographic international diversification and financial slack. Journal of Business Ethics, 168(4), 315–334. https://doi.org/10.1007/s10551-019-04177-w

Garcia, A. S. & Orsato, R. J. (2020). Testing the institutional difference hypothesis: A study about environmental, social, governance, and financial performance. Business Strategy and the Environment, 29(8), 3261-3272. https://doi.org/10.1002/ bse.2570

Giannopoulos, G., Fagernes, R. V. K., Elmarzouky, M. & Hossain, A. (2022). The ESG disclosure and the financial performance of Norwegian listed firms. Journal of Risk and Financial Management, 15(6), 237-252. https://doi.org/10.3390/jrfm15060237

Huang, R., Meng, J. & Xiu, S. (2024). A Review of the Role of ESG Performance of Listed Companieson Financial Performance: Theory, Effect, Influencing Factor sand Path. Journal of Statistics and Economics, 1(3), 7-15. https://doi.org/10.62517/jse. 202411302

Husnaini, W. & Basuki, B. (2020). ASEAN Corporate Governance Scorecard: Sustainability Reporting and Firm Value. Journal of Asian Finance Economics and Business, 7(11), 315-326. https://doi.org/10.13106/ jafeb.2020.vol7.no11.315

Khunthong, U. & Racharak, B. (2022). The Influence of Responsibility Disclosure on Environment, Societies and Corporate Governance on Firm Performance of Companies Listed in Stock Exchange of Thailand. Rajapark Journal, 17(50), 278-294. https://so05.tci-thaijo.org/index.php/RJPJ/article/view/261344/ 177553

Levin, A., Lin, C. F. & Chu, C. S. J. (2002). Unit Root Tests in panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108(1), 1-24. https://doi.org/10.1016/S0304-4076(01)00098-7

Lin, Z. (2024). Does ESG performance indicate corporate economic sustainability? Evidence based on the sustainable growth rate. Borsa Istanbul Review, 24(3), 485-493. https://doi.org/10.1016/j.bir.2024.02.010

Machmuddah, Z., Sari, D. W. & Utomo, S. D. (2020). Corporate social responsibility, profitability and firm value: Evidence from Indonesia. The Journal of Asian Finance, Economics, and Business, 7(9), 631-638. https://doi.org/10.13106/ jafeb.2020.vol7 .no9.631

Meepramool, M. & Srijunpetch, S. (2021). Does Participating in Corporate Governance Program Increase Firm Value?. Journal of Federation of Accounting Professions, 3(8), 46-62. https://so02.tci-thaijo.org/index. php/JFAC/article/view/249636/169495

Naeem, M., Ullah, H., Shahid, J. & Kakakhel, S. J. (2022). The impact of ESG practices on firm performance: Evidence from emerging countries. Indian Journal of Economics and Business, 20(1), 731-750. https://doi.org/10.1016/j.bir.2022.11.006

Nguyen, A., Doan, D. & Nguyen, L. (2020). Corporate Governance and Agency Cost: Empirical Evidence from Vietnam. Journal of Risk and Financial Management, 13(5), 1-15. https://doi.org/10.3390/jrfm13050103

Panich, R. (2022). The dynamic relationships between returns and financial performance of companies listed in Thailand Sustainability Investment (THSI) rated by Environment, Social and Governance. APHEIT Journal, 28(2), 31-45. https://so06.tci-thaijo.org/index.php/apheit-ss/article/view/256670

Patel, P. C., Guedes, M. J., Pagano, M, S. & Olson, G. T. (2020). Industry profitability matters: The value of sustainable growth rate and distance from bankruptcy as enablers of venture survival. Journal of Business Research, 47(114), 80-92. https://doi-org.chula.idm.oclc.org/10.1016/j.jbusres.2020.04.004

Peatrat, N. (2021). The Relationship between the Social Responsibility Investment Disclosure and the Firms’ Market Values. The Journal of the University of the Thai Chamber of Commerce in Humanities and Social Sciences, 41(3), 73-87. https://so06.tci-thaijo.org/index.php/utccjournalhs/article/view/246945

Phakdee, A. & Srijunpetch, S. (2023). The impact of Thailand Sustainability Investment (THSI) on Value Relevance of Earnings Under COVID-19 Pandemic: Evidence from Thailand. Journal of Business Administration - (JBA), 46(177), 1-22. https://doi.org/10.14456/jba.2023.1

Promgird, P., Sririn, W., Khammek, S. & Pholmat. P. (2023). Reflections on Defining and the characteristics of a Resource Dependence Theory Relating to Organizational Environment. Journal of Politics and Governance, 13(1), 222-242. https://so03.tci-thaijo.org/index.php/jopag/article/view/259244

Promprasit, P. (2022). The Relation of Environment, Social and Governance (ESG) and Growth opportunity of listed Thai companies (Unpublished Master’s thesis), Thammasat University, Bangkok, Thailand.

Qiao, S., Shen, T., Zhang, R. R. & Chen, H. H. (2021). The impact of various factor market distortions and innovation efficiencies on profit sustainable growth: From the view of China’s renewable energy industry. Energy Strategy Reviews, 9(38), 1-10. https://doi.org/10.1016/j.esr.2021.100746

Saygili, E., Arslan, S. & Birkan, A. O. (2021). ESG practices and corporate financial performance: Evidence from Borsa Istanbul. Borsa Istanbul Review, 22(3), 525-533. https://doi.org/10.1016/j.bir.2021.07.001

Stock Exchange of Thailand. (2024). Sustainable Investment. Retrieved June 2024, from https://setsustainability. com/page/sustainable-investment

Sustainable Capital Market Development. (2024). Disclosure and Reporting. Retrieved June 2024, from https://setsustainability.com/development_tools

Thailand Development Research Institute. (2023). Exploring Thai Listed companies’s corporate sustainablility reporting and the stkeholder involvement in coporatematerialit analysis. Retrieved June 2024, from https://www.cmri.or.th/ uploads/ images/ CMRI_Publication/16921722831%20Final%20Report _ESG%20Report_JUN2023.pdf

Thanjunpong, S. Chaiwong, D. & Awirothananon, T. (2021).The Influence of Good Corporate Governance and Free Float Shares on Stock Price and Financial Performance: An Empirical Evidence from Thailand. Journal of Accounting Profession, 17(56), 57-74. http://www.jap.tbs.tu.ac.th/files/Article/Jap56/Full/ JAP56SattDontThat.pdf

Wanganusorn, B., Tulasombat, S. & Thechatakerng, P. (2022). Agent Theory: Challenges of Business Administration in Thailand. Maejo Business Review (MBR), 4(1), 1-22. https://doi.org/10.14456/mjba.2022.1

Whelan, T., Atz, U., Van Holt, T. & Clark, C. (2021). ESG and financial performance: Uncovering the relationship by aggregating evidence from 1,000 plus studies published between 2015-2020. NYU STERN Center for sustainable business.

Yothachan, N., Meeampol, S. & Pajongwong, P. (2020). The Relationship between the Disclosure Data of Sustainability Reports and Operating Performance in ESG100 index. Journal of Library and Information Science Srinakharinwirot University, 13(2), 1-15. https://so02.tci-thaijo.org/index.php/ JLIS_SWU/article/view/244718