Disentangling Environmental Social and Governance (ESG) Performance To Enhance Firm Value
Disentangling Environmental Social and Governance (ESG) Performance To Enhance Firm Value

Summary/Abstract: This study investigates how different dimensions of Environmental, Social, and Governance (ESG) performance affect firm value. We distinguish between short-term ESG, long-term ESG, and ESG controversies. The analysis covers six Southeast Asian countries, including Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines over the period of 2008-2022. We employ Ordinary Least Squares (OLS) regression with robust standard errors and find that both short-term and consistent ESG efforts significantly enhance firm value, while ESG controversies show no significant effect. This study provides a more detailed understanding of ESG performance and its relationships to firm value in emerging markets by disentangling ESG performance into short term, long-term and controversy dimensions.

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