Environmental, Social and Governance and the Efficiency of Government-linked Companies in Malaysia

Qian Long Kweh (), Bakhtiar Alrazi (), Yee Chuan Chan (), Wan Mohammad Taufik Wan Abdullah () and Ruzana Mohd Azly Lee ()
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Qian Long Kweh: Department of Accounting, College of Business and Accounting, Universiti Tenaga Nasional, Sultan Haji Ahmad Shah Campus
Bakhtiar Alrazi: Department of Accounting, College of Business and Accounting, Universiti Tenaga Nasional, Sultan Haji Ahmad Shah Campus
Yee Chuan Chan: Department of Accounting, College of Business and Accounting, Universiti Tenaga Nasional, Sultan Haji Ahmad Shah Campus
Wan Mohammad Taufik Wan Abdullah: Department of Accounting, College of Business and Accounting, Universiti Tenaga Nasional, Sultan Haji Ahmad Shah Campus
Ruzana Mohd Azly Lee: Department of Accounting, College of Business and Accounting, Universiti Tenaga Nasional, Sultan Haji Ahmad Shah Campus

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2017, vol. 9, issue 2, 55-73

Abstract: Environmental, social and governance (ESG) are non-financial performance indicators that help determine financial performance. This study, motivated by the increasing awareness of various stakeholders about the importance of ESG disclosure, explores the impacts of ESG on firm efficiency of government-linked companies (GLCs) in Malaysia from 2006 to 2012. The ESG disclosure is based on the Sustainalytics ESG Research data available in Bloomberg while data development analysis (DEA) is used to estimate firm efficiency. This study found that GLCs focused more on governance disclosures, followed by social and environmental aspects. Governance improved firm efficiency, but social and environmental factors had no similar effects. In conclusion, this study provided insight on ESG initiatives which are useful for stakeholders when making financial and investment decisions.

Keywords: Environmemntal; Social and Governance (ESG). firm efficiency; data envelopment analysis; government-linked companies (search for similar items in EconPapers)
JEL-codes: H11 L25 M14 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:umk:journl:v:9:y:2017:i:2:p:55-73

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