ENVIRONMENT, SOCIAL AND GOVERNANCE PERFORMANCE (ESG) WITH EARNINGS QUALITY
Keywords:
Environment, Social and Governance Performance, Earnings Quality, Accruals Quality, Value Relevance, RestatementAbstract
The sustainable development goals create possibilities and business opportunities. Corporate Social Responsibility (CSR) practices are now seen as one of the important elements in the Sustainable Development’s performance and at the same time affecting the financial result. This research aims to investigate the relationship between environment, social and governance (ESG) performance and earnings quality of listed companies in the Stock Exchange of Thailand. Multiple Regression Analysis and logistics regression were used to investigate the relation amongst ESG performance and earnings quality. The result of this research found that environment, social and governance (ESG) performance is positively associated with accruals quality, indicated that social responsibility companies do reported earnings quality. However, the result also found that environment, social and governance (ESG) performance is not associated with value relevance, indicated that investors do not have considered firms’ ESG performance information as the value of securities for making investment decisions.
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