IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-06-46.html
   My bibliography  Save this article

Disclosure of Environmental, Social, and Governance on Firm Performance Pre and Post Introduction of Integrated Reporting: Evidence from ASEAN Countries

Author

Listed:
  • Kenny Fernando

    (Department of Accounting, Faculty of Business, Sampoerna University, Jakarta, Indonesia.)

  • Selfi Nurcholifah

    (Department of Accounting, Faculty of Business, Sampoerna University, Jakarta, Indonesia.)

  • Andrey Hasiholan Pulungan

    (Department of Accounting, Faculty of Business, Sampoerna University, Jakarta, Indonesia.)

Abstract

The debate among researchers is still on-going regarding the impact of ESG on firm performance. Therefore, this study aims to investigate the effect of Environmental, Social, and Governance (ESG) Disclosure towards Firm Performance in ASEAN countries before and after Integrated Reporting () introduction. Also, this study aims to explore the whether it moderates the relationship between ESGD and FP. This study focused on ASEAN countries with the selected sample criteria using purposive sampling technique. The 190 samples are obtained from Thomson Reuters from 2006 2020 (exclude 2013) obtained from Stock Exchange of each country. The researcher uses multiple linear regression analysis with the fixed effect model. Due to having heteroscedasticity, the regression needs to be standardized by using Robust Standard Error. The findings indicate that the ESG Disclosure has insignificant impact to the Firm Performance although the coefficient shows the positive sign. The second findings are does not moderate the ESGD and FP however their relationship shows positive relationship. Although the result is not significant, the positive relationship may indicate that companies who implement have better firm value and improved in firm performance.

Suggested Citation

  • Kenny Fernando & Selfi Nurcholifah & Andrey Hasiholan Pulungan, 2022. "Disclosure of Environmental, Social, and Governance on Firm Performance Pre and Post Introduction of Integrated Reporting: Evidence from ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 377-382, November.
    • Handle: RePEc:eco:journ2:2022-06-46
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/13561/7037
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/13561
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fatemi, Ali & Glaum, Martin & Kaiser, Stefanie, 2018. "ESG performance and firm value: The moderating role of disclosure," Global Finance Journal, Elsevier, vol. 38(C), pages 45-64.
    2. Patrick Velte & Martin Stawinoga, 2017. "Integrated reporting: The current state of empirical research, limitations and future research implications," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(3), pages 275-320, October.
    3. International Monetary Fund, 2011. "Macroprudential Policy: What Instruments and How to Use them? Lessons From Country Experiences," IMF Working Papers 2011/238, International Monetary Fund.
    4. El Ghoul, Sadok & Guedhami, Omrane & Kwok, Chuck C.Y. & Mishra, Dev R., 2011. "Does corporate social responsibility affect the cost of capital?," Journal of Banking & Finance, Elsevier, vol. 35(9), pages 2388-2406, September.
    5. Xiaojuan Wu & Patrycja Hąbek, 2021. "Trends in Corporate Social Responsibility Reporting. The Case of Chinese Listed Companies," Sustainability, MDPI, vol. 13(15), pages 1-16, August.
    6. Bohyun Yoon & Jeong Hwan Lee & Ryan Byun, 2018. "Does ESG Performance Enhance Firm Value? Evidence from Korea," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pornanong Budsaratragoon & Boonlert Jitmaneeroj, 2021. "Corporate Sustainability and Stock Value in Asian–Pacific Emerging Markets: Synergies or Tradeoffs among ESG Factors?," Sustainability, MDPI, vol. 13(11), pages 1-25, June.
    2. Imen Khanchel & Naima Lassoued, 2022. "ESG Disclosure and the Cost of Capital: Is There a Ratcheting Effect over Time?," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    3. Lingfu Kong & Minhas Akbar & Petra Poulova, 2023. "The Role of Environment, Social, and Governance Performance in Shaping Corporate Current and Future Value: The Case of Global Tech Leaders," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    4. Champagne, Claudia & Coggins, Frank & Sodjahin, Amos, 2022. "Can extra-financial ratings serve as an indicator of ESG risk?," Global Finance Journal, Elsevier, vol. 54(C).
    5. Yu, Haixu & Liang, Chuanyu & Liu, Zhaohua & Wang, He, 2023. "News-based ESG sentiment and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 88(C).
    6. Shakil, Mohammad Hassan, 2021. "Environmental, social and governance performance and financial risk: Moderating role of ESG controversies and board gender diversity," Resources Policy, Elsevier, vol. 72(C).
    7. Marius Banke & Stephanie Lenger & Christiane Pott, 2022. "ESG Ratings in the Corporate Reporting of DAX40 Companies in Germany: Effects on Market Participants," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    8. Marcel C. Minutolo & Werner D. Kristjanpoller & John Stakeley, 2019. "Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1083-1095, September.
    9. Rezaee, Zabihollah & Dou, Huan & Zhang, Huili, 2020. "Corporate social responsibility and earnings quality: Evidence from China," Global Finance Journal, Elsevier, vol. 45(C).
    10. Jannik Gerwanski, 2020. "Does it pay off? Integrated reporting and cost of debt: European evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2299-2319, September.
    11. Tarsisius Renald Suganda & Jungmu Kim, 2023. "An Empirical Study on the Relationship between Corporate Social Responsibility and Default Risk: Evidence in Korea," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    12. Ramírez-Orellana, Alicia & Martínez-Victoria, MCarmen & García-Amate, Antonio & Rojo-Ramírez, Alfonso A., 2023. "Is the corporate financial strategy in the oil and gas sector affected by ESG dimensions?," Resources Policy, Elsevier, vol. 81(C).
    13. Guo, Jianan & Islam, Muhammad Azizul & Jain, Ameeta & van Staden, Chris J., 2022. "Civil liberties and social and environmental information transparency: A global investigation of financial institutions," The British Accounting Review, Elsevier, vol. 54(1).
    14. Emanuele Teti & Alberto Dell'Acqua & Paolo Bonsi, 2022. "Detangling the role of environmental, social, and governance factors on M&A performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1768-1781, September.
    15. Pedro Verga Matos & Victor Barros & Joaquim Miranda Sarmento, 2020. "Does ESG Affect the Stability of Dividend Policies in Europe?," Sustainability, MDPI, vol. 12(21), pages 1-15, October.
    16. Amir Gholami & John Sands & Habib Ur Rahman, 2022. "Environmental, Social and Governance Disclosure and Value Generation: Is the Financial Industry Different?," Sustainability, MDPI, vol. 14(5), pages 1-17, February.
    17. Mohammed S. Albarrak & Marwa Elnahass & Aly Salama, 2019. "The effect of carbon dissemination on cost of equity," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1179-1198, September.
    18. Bolognesi, Enrica & Burchi, Alberto, 2023. "The impact of the ESG disclosure on sell-side analysts’ target prices: The new era post Paris agreements," Research in International Business and Finance, Elsevier, vol. 64(C).
    19. Komath, Muhammed Aslam Chelery & Doğan, Murat & Sayılır, Özlem, 2023. "Impact of corporate governance and related controversies on the market value of banks," Research in International Business and Finance, Elsevier, vol. 65(C).
    20. Yoonkyo Cho, 2022. "ESG and Firm Performance: Focusing on the Environmental Strategy," Sustainability, MDPI, vol. 14(13), pages 1-19, June.

    More about this item

    Keywords

    ESG Score; Firm Performance; Integrated Reporting; Tobin's Q;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-06-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.