Citation

Samidi, Nurulhuda Syahiirah and Kwan, Jing Hui (2024) Assessing Factors Influencing ESG Ratings in Malaysian Companies: An Empirical Study. PaperASIA, 40 (6b). pp. 280-288. ISSN 0218-4540

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Abstract

This study explores the determinants of Environmental, Social, and Governance (ESG) ratings within the Malaysian corporate sector. Employing panel regression analysis on data collected from 40 companies listed on Bursa Malaysia between 2018 and 2022, this research investigates the roles of company size, board diligence, digital transformation, Shariah compliance, and gender diversity in influencing ESG performance. The results indicate that larger firms are generally associated with lower ESG ratings, suggesting that achieving sustainability at scale remains a significant challenge. In contrast, gender diversity on corporate boards emerges as a robust positive predictor of ESG ratings, highlighting the essential role of inclusive governance in enhancing sustainability outcomes. Contrary to expectations, the study finds no significant direct impact of board diligence and digital transformation on ESG outcomes, suggesting the need for a critical reassessment of these factors within existing sustainability frameworks. By identifying key drivers and uncovering unexpected findings, this research contributes to the ongoing discourse on ESG practices, offering valuable insights for policymakers, corporate leaders, and stakeholders committed to advancing sustainable business practices. The study not only maps the landscape of ESG performance drivers in Malaysia but also sets a direction for future research aimed at developing more nuanced and effective sustainability strategies in similar emerging market contexts

Item Type:	Article
Uncontrolled Keywords:	Corporate sustainability, ESG ratings
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2321-4730.9 Industry > HD2329 Industrialization
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	13 Jan 2025 04:40
Last Modified:	13 Jan 2025 04:40
URII:	http://shdl.mmu.edu.my/id/eprint/13318

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