The Influence of Environmental, Social, and Governance (ESG) Responsibility on the Growth Opportunities of Listed Companies in the Stock Exchange of Thailand
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Abstract
This study aims to examine the influence of Environmental, Social, and Governance (ESG) responsibility on firms’ growth opportunities. The data were collected from 335 companies listed on the Stock Exchange of Thailand during 2019-2021, totaling 1,005 firm-year observations. ESG responsibility was measured using four indicators: 1) Corporate Governance (CG) scores, 2) inclusion in the ESG100 list,
3) inclusion in the Thailand Sustainability Investment (THIS) list, and 4) receipt of ESG-related sustainability disclosure awards. Growth opportunities were measured using two indicators: 1) the market-to-book ratio of assets and 2) the market-to-book ratio of equity. Factor analysis was employed to group ESG-related indicators, and multiple linear regression analysis was conducted to test the research hypotheses.
The results from multiple regression analysis revealed that ESG responsibility had a statistically significant positive influence on firms’ growth opportunities. These findings suggested that conducting business with consideration for stakeholders particularly in terms of environmental, social, and governance aspects served as a key driver in enhancing firms’ long-term growth potential.
The results from multiple regression analysis reveal a statistically significant positive relationship between ESG responsibility and growth opportunities. These findings suggest that firms which operate with consideration for stakeholders—particularly in terms of environmental, social, and governance dimensions—are more likely to enhance their long-term growth potential.
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