Environmental, Social and Governance Disclosure, ESG Reputation and Firm Performance: Sensitive Industries
DOI:
https://doi.org/10.55164/ecbajournal.v18i1.277440Keywords:
ESG Disclosure, ESG Reputation, SET ESG RatingsAbstract
The objectives of the study were to 1) study the influence of environmental, social and corporate governance [ESG] disclosure, and ESG reputation on the firm’s performance, and 2) test the role of ESG reputation as a mediator. The sample group consisted of 262 listed firms in the Stock Exchange of Thailand in sensitive industries. Secondary data was collected from the SETSMART database. Data was analyzed using descriptive statistics which were mean, standard deviation, percentage, and hypotheses were tested using path analysis. Results of indices to determine whether the path model has acceptable fit showed that the RMSEA value was 0.00, SRMR value was 0.00, TLI value was 1.00, and CFI value was 1.00. Thus, these indices all demonstrate that the tested path analysis model has an acceptable fit. The results found that 1) ESG disclosure had no direct or indirect influence on the firm’s performance, 2) ESG disclosure had a direct influence on ESG reputation, and 3) ESG reputation had no roles as a mediator variable. Therefore, top management in the sensitive industries should pay attention to ESG practices and presentations because it can improve ESG reputation. Moreover, the findings will be useful for policymakers in formulating relevant policies.
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