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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
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
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    Cited by:

    1. Kenny Fernando & Han Jocelyn & Frista Frista & Budi Kurniawan, 2024. "The Effect of Green Accounting Disclosure on the Firm Value of Listed Mining and Agriculture Companies in Southeast Asia Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 377-382, January.
    2. Phemelo Tamasiga & Helen Onyeaka & Malebogo Bakwena & El houssin Ouassou, 2024. "Beyond compliance: evaluating the role of environmental, social and governance disclosures in enhancing firm value and performance," SN Business & Economics, Springer, vol. 4(10), pages 1-38, October.

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    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

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