Citation

Shahrun, Nur Shahira (2024) Effect of Environmental, Social and Governance (ESG) and its dimensions on the Corporate Value, Performance and Efficiency of listed companies in Malaysia. Masters thesis, Multimedia University.

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Abstract

The research investigates the influence of Environmental, Social, and Governance (ESG) practices on corporate value, performance, and efficiency, especially within the Malaysian framework. The objective is to comprehend how ESG practices affect these corporate results, particularly given the rising significance of sustainability in business activities. The context underscores that although ESG practices are becoming more prevalent worldwide, their implementation in Malaysia remains nascent, presenting considerable opportunities for improving corporate image and market worth. The study seeks to fill the gap in current literature concerning the distinct impacts of ESG practices on corporate outcomes in Malaysia. The issue statement emphasizes that the integration of ESG practices is still at a formative stage, coupled with economic difficulties and the perception of ESG as a financial burden, which hampers effective execution. Challenges such as high costs and insufficient awareness further restrict comprehensive ESG engagement, highlighting the necessity for focused research on the practical application of ESG practices. The study utilizes an extensive analysis of panel data sourced from Bursa Malaysia, employing techniques like pooled OLS, random effects, and fixed effects models to assess the connection between ESG practices and corporate value, performance, and efficiency. The research methodology involves evaluating various financial indicators, including Tobin's Q and Return on Assets (ROA), as well as Data Envelopment Analysis (DEA) to gauge corporate value, performance, and efficiency. The results reveal a notable link between ESG practices and corporate performance, with social metrics exerting a positive effect on corporate performance. Conversely, the governance aspect displays a significant negative coefficient, indicating a need for improved alignment of ESG efforts with stakeholder expectations. The research also demonstrates that sales growth has a favorable impact on corporate value, whereas firm size shows a negative yet insignificant correlation. The study concludes that although ESG practices can enhance corporate value and performance, their effect on efficiency is not as substantial. It stresses the necessity of incorporating ESG practices into corporate strategies to bolster stakeholder trust and involvement.

Item Type:	Thesis (Masters)
Additional Information:	Call No.: HC79.E5 N87 2024
Uncontrolled Keywords:	Sustainable development—Malaysia
Subjects:	H Social Sciences > HC Economic History and Conditions > HC79 Special Topics. Including air pollution, automation, consumer demand, famines, flow of funds, etc.
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	03 Feb 2025 06:51
Last Modified:	03 Feb 2025 06:51
URII:	http://shdl.mmu.edu.my/id/eprint/13348

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