Citation

Shahrun, Nur Shahira and Ramasamy, Suganthi and Yuen, Yee Yen (2023) Effect on Environmental, Social and Governance (ESG) Criteria on the Firm Profitability of Listed Companies in Malaysia. WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS, 21. pp. 239-247. ISSN 1109-9526

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Abstract

This paper analyzes the effect of ESG criteria on the firm profitability among Malaysian listed firms. Firm-specific variables such as firm size, revenue growth, and leverage were also included in the analysis. A total of 42 companies from Bursa Malaysia are selected from Bloomberg’s database that has complete ESG scores data from 2011-2021. Firm profitability was measured using ROA and ROE. Using panel data analysis, this study found that ESG scores have a significant positive influence on firm profitability. Meanwhile, Social Score individually has a significant negative impact on firm profitability. Individual Environment and Governance scores do not have a significant relationship with firm profitability. Leverage and firm size significantly negatively affect firm profitability.

Item Type:	Article
Uncontrolled Keywords:	Environmental
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD101-1395.5 Land use. Land tenure
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	04 Mar 2024 02:48
Last Modified:	04 Mar 2024 02:48
URII:	http://shdl.mmu.edu.my/id/eprint/12158

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