Chulalongkorn University Theses and Dissertations (Chula ETD)
Other Title (Parallel Title in Other Language of ETD)
ประสิทธิภาพของปัจจัย สิ่งแวดล้อม สังคม และ ธรรมาภิบาล (ESG) ส่งผลกระทบต่อความเสี่ยงทางการเงินหรือไม่? หลักฐานจากตลาดเอเชียแปซิฟิก
Year (A.D.)
2023
Document Type
Independent Study
First Advisor
Boonlert Jitmaneeroj
Faculty/College
Faculty of Commerce and Accountancy (คณะพาณิชยศาสตร์และการบัญชี)
Department (if any)
Department of Banking and Finance (ภาควิชาการธนาคารและการเงิน)
Degree Name
Master of Science
Degree Level
Master's Degree
Degree Discipline
Finance
DOI
10.58837/CHULA.IS.2023.21
Abstract
This research investigates the relationship between Environmental, Social, and Governance (ESG) performance, represented by ESG scores, and Probability of Financial Distress Risk (FDR), as proxied by Ohlson O-Score, for firms operating in the Asia-Pacific region from 2010 to 2022. In addition, the aforementioned relationship during economic crisis and the level of market development is also investigated. The findings reveal a negative association between ESG performance and the probability of FDR in which the increase in ESG performance reduces the likelihood of FDR. Notably, the environmental and social pillars of ESG consistently exhibit negative relationship with FDR, with the social pillar having more pronounced effect. However, the governance pillar presents mixed results, underscoring the potential risks of excessive investment in governance-related activities. Moreover, this study underscores the impact of external factors, such as economic conditions and market development levels, on the ESG-FDR relationship. During economic crises, the Covid-19 pandemic, firms prioritizing ESG practices faced an elevated likelihood of financial distress. In terms of level of market development between developed and emerging markets, the research highlights that ESG practices exert a more significant influence in developed markets in the reduction in the probability of FDR, emphasizing the role of market maturity in shaping this connection.
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Recommended Citation
Srikranjanapert, Methee, "Does ESG performance impact financial distress risk? evidence from Asia-Pacific markets" (2023). Chulalongkorn University Theses and Dissertations (Chula ETD). 10007.
https://digital.car.chula.ac.th/chulaetd/10007