Title: Analysing the impact of ESG on the performance of Malaysian public-listed companies

Authors: Azira Abdul Adzis; Woei Chyuan Wong; Sabariah Nordin; Abd Halim Ahmad; Shamsul Bahrain Mohamed-Arshad

Addresses: School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia ' School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia ' School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia ' School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia ' School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia

Abstract: This study examines the impact of environmental, social and governance (ESG) practices on the performance of 924 public-listed companies in Malaysia, using a two-stage Heckman sample selection model covering the period from 2005 to 2018. The findings indicate that ESG has a positive and significant impact on the market and financial performance, supporting the stakeholder theory, where firms that engage in social responsibility will have a better performance. The findings provide valuable insights on the importance of ESG practices in Malaysia, a country that is practically weak in dealing with the environmental issues in the Asia-Pacific region.

Keywords: ESG; performance; public-listed companies; Malaysia.

DOI: 10.1504/IJBEM.2022.126581

International Journal of Business and Emerging Markets, 2022 Vol.14 No.4, pp.415 - 434

Received: 10 Jan 2022
Accepted: 16 Jul 2022
Published online: 28 Oct 2022 *

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