The Impact of Sustainability Report Disclosure and Debt Affordability on Profitability of Companies in the SETESG Index on the Stock Exchange of Thailand

Abstract

This article aimed to study (1) the impact of Sustainability Report Disclosure, and (2) Debt Affordability on Profitability of companies in the SETESG index on the Stock Exchange of Thailand. The data collected for secondary data from financial information for periods of 3 years from 2021 to 2023, a total of 67 companies, 201 samples from companies in the SETESG index on the Stock Exchange of Thailand. The data were analyzed using descriptive statistics, correlation coefficient analysis, and multiple regression analysis. The result of the study found that: 1) Sustainability Report Disclosure has both positive and negative impacts on Profitability of companies in the SETESG index on the Stock Exchange of Thailand as follows: Sustainability Report Disclosure in Governance has a positive impact on profitability, measured by return on total assets (ROA), which is statistically significant at the 0.01 level and has a positive impact on profitability measured by return on equity (ROE), which is statistically significant at the 0.05 level. Sustainability Report Disclosure in Environment has a negative impact on profitability, measured by return on total assets (ROA) and return on equity (ROE), which is statistically significant at the 0.01 level. 2) Debt Affordability has both positive and negative impacts on Profitability of companies in the SETESG index on the Stock Exchange of Thailand as follows: Debt to asset ratio and Interest Coverage ratio have a positive impact on profitability measured by return on total assets (ROA), which is statistically significant at the 0.05 level. In contrast, Debt to equity ratio has a negative, which is statistically significant at the 0.05 level. Interest Coverage ratio has a positive impact on profitability measured by return on equity (ROE), which is statistically significant at the 0.05 level.