Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar

Earlier firms were evaluated mostly from their financial performance perspective, but with the increasing attention to environmental, social and governance (ESG) performance of firms became key concerns to stakeholders. Given the demand of stakeholders for increased transparency on environmental, so...

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Main Author:	Nik Azhar, Nik Aida Suraya
Format:	Thesis
Language:	English
Published:	2023
Subjects:	Banking
Online Access:	https://ir.uitm.edu.my/id/eprint/77753/1/77753.pdf
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id	my-uitm-ir.77753
record_format	uketd_dc
spelling	my-uitm-ir.777532023-08-09T04:39:16Z Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar 2023-01 Nik Azhar, Nik Aida Suraya Banking Bank accounts. Bank deposits. Deposit banking Banks and the state. State supervision of banks Earlier firms were evaluated mostly from their financial performance perspective, but with the increasing attention to environmental, social and governance (ESG) performance of firms became key concerns to stakeholders. Given the demand of stakeholders for increased transparency on environmental, social, and governance (ESG) issues, businesses all over the world have rapidly begun adopting the practice of sustainability reporting. While many studies exist on the association of ESG concerns of an organization with its financial profitability, the literature in the context of banking is still limited. The purpose of this study is to explore the relationship between Environmental, Social, and Governance Disclosure (ESG) and firm performance by focusing on the banking sector. Firm performance is being measured using operational (Return on Assets), financial (Return on Equity), and market performance (Tobin's Q). This study looked at 14 different banks in Malaysia over the course of seven years (2015-2021). All information for the variables is hand-collected and analysed using EViews. The study shows that the relationship between performance and different disclosures is complicated; for instance, it is found that environmental disclosure (ED) has a positive influence on Tobin's Q but a negative impact on ROA and ROE. Additionally, corporate social responsibility disclosure (CSRD) has a negative effect on return on assets (ROA). The findings of this research can be implemented into a viable model that can be used by financial institutions all over the world to concentrate on the impact that ESG disclosure plays on performance. 2023-01 Thesis https://ir.uitm.edu.my/id/eprint/77753/ https://ir.uitm.edu.my/id/eprint/77753/1/77753.pdf text en public masters Universiti Teknologi MARA, Kelantan Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Banking Banking Banking
spellingShingle	Banking Banking Banking Nik Azhar, Nik Aida Suraya Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
description	Earlier firms were evaluated mostly from their financial performance perspective, but with the increasing attention to environmental, social and governance (ESG) performance of firms became key concerns to stakeholders. Given the demand of stakeholders for increased transparency on environmental, social, and governance (ESG) issues, businesses all over the world have rapidly begun adopting the practice of sustainability reporting. While many studies exist on the association of ESG concerns of an organization with its financial profitability, the literature in the context of banking is still limited. The purpose of this study is to explore the relationship between Environmental, Social, and Governance Disclosure (ESG) and firm performance by focusing on the banking sector. Firm performance is being measured using operational (Return on Assets), financial (Return on Equity), and market performance (Tobin's Q). This study looked at 14 different banks in Malaysia over the course of seven years (2015-2021). All information for the variables is hand-collected and analysed using EViews. The study shows that the relationship between performance and different disclosures is complicated; for instance, it is found that environmental disclosure (ED) has a positive influence on Tobin's Q but a negative impact on ROA and ROE. Additionally, corporate social responsibility disclosure (CSRD) has a negative effect on return on assets (ROA). The findings of this research can be implemented into a viable model that can be used by financial institutions all over the world to concentrate on the impact that ESG disclosure plays on performance.
format	Thesis
qualification_level	Master's degree
author	Nik Azhar, Nik Aida Suraya
author_facet	Nik Azhar, Nik Aida Suraya
author_sort	Nik Azhar, Nik Aida Suraya
title	Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
title_short	Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
title_full	Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
title_fullStr	Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
title_full_unstemmed	Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar
title_sort	relationship between esg disclosure and firm performance: malaysian banking sector / nik aida suraya nik azhar
granting_institution	Universiti Teknologi MARA, Kelantan
granting_department	Faculty of Accountancy
publishDate	2023
url	https://ir.uitm.edu.my/id/eprint/77753/1/77753.pdf
_version_	1783736163381542912

Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar

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