Empirical study on ESG score and corporate financial performance of firms listed with the stock exchange of Thailand | |
| Author | Rahman, Kazi Mustafizur |
| Call Number | AIT RSPR no.SM-21-13 |
| Subject(s) | Stock-exchange--Thailand Corporations--Thailand--Finance Employee empowerment |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | The word sustainability is one of the most precious and pressing concern in the current world. It is not limited to only environment or climate change but also including all the stakeholders, living and non-living beings on Earth. Corporations play a major part in this ecosystem and as such their responsibility towards environment, society, the internal and external stakeholders cultivated through ethical behavior is critical to the succession and sustainability of this world. This study illustrates the relationship of companies environmental, social and governance (ESG) performances with their financial performances to deduce the theme of corporate social responsibility (CSR) and financial sustainability in context of Thailand. The study encompasses CSR measured through combined ESG score from Bloomberg. The study has been conducted on the firms’ listed with the Stock exchange of Thailand having ESG scores for the period between 2015 and 2019. Out of approximately 800 companies, a sample of 101 firms have been considered under the research across different industries. Based on the past literature, financial performance of the firms have been measured through return on assets, return on equity and Tobin’s Q. Some control variables have also been considered in the study like size, debt and sales growth. Generalized least square regression, ranked correlation of ESG Scores across the variables was conducted for each industry and the overall sample. The results revealed that ESG Score is not a significant predictor of the financial performance of the firms on the overall sample as well as the industry. Size of the firms proved to be a significant factor to predict the financial performance of the firms. In the analysis it was found that ESG score and size acted as interrelated factor compared to ROA and ROE and the final model was constructed with only Tobin’s Q as the dependent variable. The ranked correlation provided insightful information on the trends of the scores of the companies and how large firms possess higher capacity in obtaining higher In each case the empirical models were significant with the notion of missing out other significant variables that could have extended the explanatory capacity. The study also describes the limitations and possible ways of improving the inferences in further studies. |
| Year | 2021 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Sundar Venkatesh |
| Examination Committee(s) | Zimmermann, Willi;Badir, Yuosre F. M. |
| Scholarship Donor(s) | His Majesty the King’s Scholarships (Thailand) |
| Degree | Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2021 |