FIRM GROWTH, CASH HOLDINGS AND FINANCIAL PERFORMANCE INFLUENCES THE SUSTAINABILITY ASSESSMENT OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND: SET ESG RATINGS
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Abstract
This research aims to study the influence of firm growth, cash holdings, and financial performance on the sustainability ratings of companies listed on the Stock Exchange of Thailand (SET), specifically within the SET ESG Ratings group. This is a quantitative study, with a sample consisting of companies listed in the SET ESG Ratings group during the years 2021 to 2023. Initially, 503 companies were identified, and after applying selection criteria, a final sample of 272 companies was used for analysis over the three-year period. Descriptive statistics and multiple regression analysis were employed for data analysis. The results revealed that firm growth has a positive and statistically significant influence on sustainability ratings at the 0.05 significance level (p-value = 0.024 < 0.05). Similarly, financial performance has a positive and significant influence on sustainability ratings at the 0.05 level (p-value = 0.046 < 0.05). However, cash holdings were found to have no significant influence on sustainability ratings (p-value = 0.092 > 0.05). The control variables in this study included firm size and capital structure. The firm size had a positive and significant influence on sustainability ratings (p-value = 0.039 < 0.05), as did capital structure (p-value = 0.033 < 0.05). These findings indicate that the capacity for firm growth, stable profitability, and sound capital management are key mechanisms that support companies in consistently and credibly engaging in ESG-related activities, thereby enhancing their credibility among evaluators and stakeholders in the capital market.
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References
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