ESG Ratings and Financial Performance of Thai Listed Companies
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Abstract
Starting in 2023, the Stock Exchange of Thailand will release evaluation results in the form of ESG Ratings, which assess the Thailand Sustainability Investment (THSI). A company that has undergone evaluation is one that has integrated the concept of sustainability into its business operations. This study investigates the impact of ESG ratings on financial performance, as measured by return on total assets and return on equity, using secondary data from publicly listed companies. The study examines the Thailand Stock Exchange for the fiscal year that concludes in 2023. We employed multiple regression analysis to evaluate the influence of 615 sample groups in accordance with the research objectives. The research determined that ESG ratings affected financial performance, as measured by the return on equity. However, it did not affect financial performance, as measured by the rate of return on total assets. Investors and stakeholders may consider fundamental information from financial performance measured by return on equity in evaluating investment securities as well as in making economic decisions.
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