IDEAS home Printed from https://ideas.repec.org/a/uii/jaaife/v26y2022i2p119-129id22834.html
   My bibliography  Save this article

The effects of Environmental, Social, and Governance (ESG) scores on firm values in ASEAN member countries

Author

Listed:
  • Paulina Inggita Prabawati
  • Isna Putri Rahmawati

Abstract

This study examines the effect of Environmental, Social, and Governance (ESG) scores on firm value in ASEAN. This study uses data from 184 public companies listed on the stock exchanges of each country from 2010 to 2019. This study finds that ESG scores have a negative effect on firm value (Tobin's Q). This finding shows that the higher the ESG value, the lower the firm value (undervalued) in ASEAN. Furthermore, this study shows the influence of each pillar, namely the environmental, social, and governance. The environmental and social pillars negatively affect firm value, while the governance pillar has no effect. In ASEAN, a high ESG score is not considered an advantage for a company. This research has implications for companies to consider increasing information and compliance with environmental and social aspects of the company to increase their values. In addition, it also adds to the literature regarding the determinants of firm value on non-financial factors.

Suggested Citation

  • Paulina Inggita Prabawati & Isna Putri Rahmawati, 2022. "The effects of Environmental, Social, and Governance (ESG) scores on firm values in ASEAN member countries," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 26(2), pages 119-129.
    • Handle: RePEc:uii:jaaife:v:26:y:2022:i:2:p:119-129:id:22834
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JAAI/article/view/22834/14590
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Sustainability; ESG; Firm Value;
    All these keywords.

    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:uii:jaaife:v:26:y:2022:i:2:p:119-129:id:22834. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JAAI/ .

    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.