ESG and Performance: Effect of government ownership and green bond issuer

Karyani, Etikah and Maulina, Vina ESG and Performance: Effect of government ownership and green bond issuer. In: InternationalConference on Sustainable Management and Innovation (ICoSMI) 2020, 14—16 September 2020. (Unpublished)

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Abstract

The environmental, social and governance (ESG) dimensions can contribute to an organization's economic performance. Using stakeholder theory as a framework, this study aims to find the impacts of environmental, social and governance (ESG) investments on organizational (financial and economic) performance. This study is the first empirical analysis that include government ownership and green bond issues factors as variables that are interacted with ESG investments. Government ownership is perceived as having commitment and the issuance of green bonds can be seen as a proxy for companies to make environmental-friendly investments and change their ESG profile. Annual ESG index data of ASEAN-5 organisations are used which covers the period 2017 to 2019 and are tested using Ordinary Least Square (OLS). In accordance with the results of previous research, this study finds that ESG investment consistently improves both financial (profitability) and economic (stock) performance of the company. However, studies cannot prove the effect of the level of government ownership and bond issuance on ESG investment associations with profitability, on the contrary, the stock returns decline when ESG investments from organizations that have greater government ownership. This research contributes to the literature by focusing on unstructured ESG investment in ASEAN. The implication of this finding is investors and stakeholders may assess how much the company's behavior towards the environment to make their decisions.

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Prodi S1 Akuntansi
Depositing User: Mrs. Etikah Karyani
Date Deposited: 01 Sep 2020 01:59
Last Modified: 01 Sep 2020 01:59
URI: http://repository.ibs.ac.id/id/eprint/1021

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