Climate Change Management and Firm Value: Insights from Southeast Asia Markets (A Survey of Public Companies in Indonesia, Malaysia and Thailand for the 2022–2023 Period)

Arie Pratama (), Nunuy Nur Afiah and Rina Fadhilah Ismail
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Arie Pratama: Department of Accounting, Faculty of Economics and Business, Universitas Padjadjaran, Sumedang 45363, Indonesia
Nunuy Nur Afiah: Department of Accounting, Faculty of Economics and Business, Universitas Padjadjaran, Sumedang 45363, Indonesia
Rina Fadhilah Ismail: Faculty of Accountancy, Universiti Teknologi MARA Cawangan Selangor, Puncak Alam 42300, Malaysia

Sustainability, 2025, vol. 17, issue 11, 1-30

Abstract: Climate change is a critical sustainability issue that influences investors’ decisions. Numerous organizations have implemented climate-related policies and established governance structures to address this challenge. This study examines the extent to which climate change management performance affects firm value. This research utilizes 13 climate change management performance indicators from the Refinitiv Eikon Database. Firm value was measured using the price-to-book value (PBV) ratio, with firm size, profitability, and cost of debt included as control variables. This study examines 531 public companies in three Southeast Asian countries. Quantitative data were analyzed using descriptive statistics, ANOVA, and path analysis. The results indicate that robust climate change management performance positively affects firm value. However, significant variations exist across countries and industries regarding climate change management practices. These findings highlight the necessity for organizations to strengthen their climate change management efforts by preparing comprehensive performance disclosures. Enhanced transparency can provide clearer insights for environmentally conscious investors, potentially fostering positive market reactions toward the company.

Keywords: climate change; management; performance; sustainability; Southeast Asia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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