Environmental, Social, and Governance (ESG) performance as a driver of financial outcomes: empirical evidence from Thailand

Suthat Wongsakulchai; Arnat  Leemakdej

Authors

Suthat Wongsakulchai School of Interdisciplinary Studies, Mahidol University, Thailand.
Arnat Leemakdej Thammasat Business School, Thammasat University

Keywords:

Environment Society and Governance (ESG), Financial Outcomes, Thai Listed Firms, Stakeholder Theory, Thailand

Abstract

This study examines the impact of environmental, social, and governance (ESG) performance on financial outcomes using data from firms listed on the Stock Exchange of Thailand (SET). The sample comprises 287 firms over the period 2015–2024, totaling 1,179 observations. Employing a quantitative research design, the analysis is conducted using multiple linear regression. Grounded in stakeholder theory, the findings indicate that ESG performance is positively and statistically significantly associated with financial outcomes at the 1%, 5%, and 10% levels. The study offers policy implications highlighting the importance of strengthening ESG regulatory frameworks, standardizing disclosure practices, and implementing incentive mechanisms to support ESG integration in governance. Specific recommendations include promoting green innovation and anti-greenwashing enforcement, enhancing social responsibility through labor and community initiatives, and reinforcing governance via robust internal controls, board independence, and performance-based executive oversight. These insights contribute to ESG-related policy and governance discussions in emerging markets, particularly Thailand.

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