IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v10y2023i1p2168290.html
   My bibliography  Save this article

ESG Performance and Corporate Financial Risk of the Alternative Capital Market in Thailand

Author

Listed:
  • Muttanachai Suttipun

Abstract

This study aims to investigate the pattern and level of environmental, social and governance (ESG) performance of listed companies in the alternative capital market of Thailand, and (2) to test for the relationship between ESG performance and corporate financial risk. The population and sample data are comprised of all the listed companies in the alternative capital market in Thailand, namely, the Market for Alternative Investment (MAI). Content analysis by scoring is used to quantify ESG performance in annual reports during the period 2017–2021, while corporate financial risk is measured by the ratio of debt on equity. Descriptive analysis, correlation matrix, and multiple regression are used to analyze the data of this study. The average scores of ESG performance are 6.182 out of 11 scores. In addition, there is an increase of ESG performance in annual reports of the listed companies from 5.540 to 7.180 scores during the period being studied. Finally, the result finds a negative relationship between ESG performance and corporate financial risk. The signaling theory demonstrates an explanation proposing that the increase of ESG performance can reduce corporate financial risk. Therefore, top-management and shareholders should pay attention to ESG responsibility because it can decrease risk as well as enhance sustainable development.

Suggested Citation

  • Muttanachai Suttipun, 2023. "ESG Performance and Corporate Financial Risk of the Alternative Capital Market in Thailand," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2168290-216, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2168290
    DOI: 10.1080/23311975.2023.2168290
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2023.2168290
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2023.2168290?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiajia Liu & Zhenzhen Ge & Yahan Wang, 2024. "Role of environmental, social, and governance rating data in predicting financial risk and risk management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 260-273, January.
    2. Yihe Lu & Yinyun Yu & Ting Qu, 2023. "An ESG Assessment Approach with Multi-Agent Preference Differences: Based on Fuzzy Reasoning and Group Decision-Making," Sustainability, MDPI, vol. 15(16), pages 1-17, August.

    More about this item

    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:taf:oabmxx:v:10:y:2023:i:1:p:2168290. 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: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    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.