The Resilience of ASEAN 5 Company During Pandemics: Does ESG matter?

Amalia Siti Khodijah (), Dewi Ratnasari Astuti and Anja Muhammad Zaenul Ihsan
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Amalia Siti Khodijah: Cipasung University
Dewi Ratnasari Astuti: Cipasung University
Anja Muhammad Zaenul Ihsan: Cipasung University

A chapter in Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023), 2024, pp 180-185 from Springer

Abstract: Abstract This paper sets out to determine the impact of Environmental, Social, and Governance (ESG) performance on the financial resilience of non-financial companies operating in ASEAN 5 (Indonesia, Malaysia, Philippines, Singapore, and Thailand) during the COVID-19 pandemic. Using data from the Thomson Reuters database and the statistical software SPSS25, a linear regression model was employed to analyze panel data. The results reveal that Malaysian companies with a high ESG score experienced a reduction in asset turnover and operating profit volatility during the pandemic. However, no significant differences were found in asset turnover and operating profit margin based on ESG score for other countries. A pillar-wise analysis of the ESG score showed that all three pillars (E, S, and G) significantly impacted the resilience of Malaysian firms’ asset returns, while only pillars E and S influenced the operating profit margin. Overall, the study’s findings suggest that while engaging in ESG activities may not necessarily lead to better performance during a crisis, it still holds importance for both managers and investors.

Keywords: Covid-19; ESG; Financial Performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-443-3_26

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DOI: 10.2991/978-94-6463-443-3_26

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