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Disentangling Environmental Social and Governance (ESG) Performance To Enhance Firm Value

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  • Fiki Kartika
  • Hadri Kusuma
  • Yuni Nustini

Abstract

This study investigates how different dimensions of Environmental, Social, and Governance (ESG) performance affect firm value. We distinguish between short-term ESG, long-term ESG, and ESG controversies. The analysis covers six Southeast Asian countries, including Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines over the period of 2008-2022. We employ Ordinary Least Squares (OLS) regression with robust standard errors and find that both short-term and consistent ESG efforts significantly enhance firm value, while ESG controversies show no significant effect. This study provides a more detailed understanding of ESG performance and its relationships to firm value in emerging markets by disentangling ESG performance into short term, long-term and controversy dimensions.

Suggested Citation

  • Fiki Kartika & Hadri Kusuma & Yuni Nustini, 2026. "Disentangling Environmental Social and Governance (ESG) Performance To Enhance Firm Value," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 90-105.
    • Handle: RePEc:bas:econst:y:2026:i:3:p:90-105
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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