The impact of environmental, social and governance and chosen by leading organization on financial performance of companies listed on the stock exchange of Thailand

Abstract

The objectives of this research were to study the impact of environmental, social and governance and chosen by leading organization on financial performance of companies listed on the stock exchange of Thailand. This is a quantitative research. The researchers collected secondary data from 81 companies with complete data. The collecting data for 243 sample groups in the period 2020 - 2022. Data was analyzed using a survey statistical package. This research used the descriptive statistics analysis including percentage, mean and standard deviation. It described the general characteristics of the variables and multiple regression analysis to test the research hypotheses. The research findings indicated that the impact of environmental, social and governance that environmental impact performance as follows: it had negative affect on financial performance with statistical significance of debt to equity ratio. And social impacts were as follows: there were negative affects on financial performance with statistical significance of net profit margin and return on asset. While it was chosen by leading organizations from investing activities and financing activities significantly impact return on assets. For being selected by leading organizations, it had a significant positive impact on financial performance, including being ranked in ESG100, being selected to be listed in Thailand Sustainability Index and being selected to be listed in Dow Jones Sustainability Index. The impacts of sustainable organizational development included evaluating corporate governance operations, and being selected by leading organizations including being ranked on the corporate governance of listed companies. There was no relationship to the financial performance.