Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia
Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regard...
Ausführliche Beschreibung
Autor*in: |
Md. Mahmudul Alam [verfasserIn] Yasmin Mohamad Tahir [verfasserIn] Abdulazeez Y. H. Saif-Alyousfi [verfasserIn] Wanamina Bostan Ali [verfasserIn] Ruhaini Muda [verfasserIn] Sabariah Nordin [verfasserIn] |
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E-Artikel |
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Sprache: |
Englisch |
Erschienen: |
2022 |
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Schlagwörter: |
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Übergeordnetes Werk: |
In: Cogent Business & Management - Taylor & Francis Group, 2015, 9(2022), 1 |
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Übergeordnetes Werk: |
volume:9 ; year:2022 ; number:1 |
Links: |
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DOI / URN: |
10.1080/23311975.2022.2118207 |
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Katalog-ID: |
DOAJ033739277 |
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10.1080/23311975.2022.2118207 doi (DE-627)DOAJ033739277 (DE-599)DOAJ626ac3768dfb4e32a2f43e8dbb314615 DE-627 ger DE-627 rakwb eng HF5001-6182 HD28-70 Md. Mahmudul Alam verfasserin aut Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia 2022 Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. ESG rating F4GBM Index Public listed firms Malaysia Bursa Malaysia Business Management. Industrial management Yasmin Mohamad Tahir verfasserin aut Abdulazeez Y. H. Saif-Alyousfi verfasserin aut Wanamina Bostan Ali verfasserin aut Ruhaini Muda verfasserin aut Sabariah Nordin verfasserin aut In Cogent Business & Management Taylor & Francis Group, 2015 9(2022), 1 (DE-627)837953715 (DE-600)2837523-3 23311975 nnns volume:9 year:2022 number:1 https://doi.org/10.1080/23311975.2022.2118207 kostenfrei https://doaj.org/article/626ac3768dfb4e32a2f43e8dbb314615 kostenfrei https://www.tandfonline.com/doi/10.1080/23311975.2022.2118207 kostenfrei https://doaj.org/toc/2331-1975 Journal toc kostenfrei GBV_USEFLAG_A SYSFLAG_A GBV_DOAJ GBV_ILN_11 GBV_ILN_20 GBV_ILN_22 GBV_ILN_23 GBV_ILN_24 GBV_ILN_31 GBV_ILN_39 GBV_ILN_40 GBV_ILN_60 GBV_ILN_62 GBV_ILN_63 GBV_ILN_65 GBV_ILN_69 GBV_ILN_70 GBV_ILN_73 GBV_ILN_95 GBV_ILN_105 GBV_ILN_110 GBV_ILN_151 GBV_ILN_152 GBV_ILN_161 GBV_ILN_206 GBV_ILN_213 GBV_ILN_230 GBV_ILN_285 GBV_ILN_293 GBV_ILN_370 GBV_ILN_602 GBV_ILN_2009 GBV_ILN_2014 GBV_ILN_2034 GBV_ILN_2055 GBV_ILN_2108 GBV_ILN_2111 GBV_ILN_4012 GBV_ILN_4037 GBV_ILN_4112 GBV_ILN_4125 GBV_ILN_4126 GBV_ILN_4249 GBV_ILN_4305 GBV_ILN_4306 GBV_ILN_4307 GBV_ILN_4313 GBV_ILN_4322 GBV_ILN_4323 GBV_ILN_4324 GBV_ILN_4325 GBV_ILN_4326 GBV_ILN_4335 GBV_ILN_4338 GBV_ILN_4367 GBV_ILN_4700 AR 9 2022 1 |
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10.1080/23311975.2022.2118207 doi (DE-627)DOAJ033739277 (DE-599)DOAJ626ac3768dfb4e32a2f43e8dbb314615 DE-627 ger DE-627 rakwb eng HF5001-6182 HD28-70 Md. Mahmudul Alam verfasserin aut Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia 2022 Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. ESG rating F4GBM Index Public listed firms Malaysia Bursa Malaysia Business Management. Industrial management Yasmin Mohamad Tahir verfasserin aut Abdulazeez Y. H. Saif-Alyousfi verfasserin aut Wanamina Bostan Ali verfasserin aut Ruhaini Muda verfasserin aut Sabariah Nordin verfasserin aut In Cogent Business & Management Taylor & Francis Group, 2015 9(2022), 1 (DE-627)837953715 (DE-600)2837523-3 23311975 nnns volume:9 year:2022 number:1 https://doi.org/10.1080/23311975.2022.2118207 kostenfrei https://doaj.org/article/626ac3768dfb4e32a2f43e8dbb314615 kostenfrei https://www.tandfonline.com/doi/10.1080/23311975.2022.2118207 kostenfrei https://doaj.org/toc/2331-1975 Journal toc kostenfrei GBV_USEFLAG_A SYSFLAG_A GBV_DOAJ GBV_ILN_11 GBV_ILN_20 GBV_ILN_22 GBV_ILN_23 GBV_ILN_24 GBV_ILN_31 GBV_ILN_39 GBV_ILN_40 GBV_ILN_60 GBV_ILN_62 GBV_ILN_63 GBV_ILN_65 GBV_ILN_69 GBV_ILN_70 GBV_ILN_73 GBV_ILN_95 GBV_ILN_105 GBV_ILN_110 GBV_ILN_151 GBV_ILN_152 GBV_ILN_161 GBV_ILN_206 GBV_ILN_213 GBV_ILN_230 GBV_ILN_285 GBV_ILN_293 GBV_ILN_370 GBV_ILN_602 GBV_ILN_2009 GBV_ILN_2014 GBV_ILN_2034 GBV_ILN_2055 GBV_ILN_2108 GBV_ILN_2111 GBV_ILN_4012 GBV_ILN_4037 GBV_ILN_4112 GBV_ILN_4125 GBV_ILN_4126 GBV_ILN_4249 GBV_ILN_4305 GBV_ILN_4306 GBV_ILN_4307 GBV_ILN_4313 GBV_ILN_4322 GBV_ILN_4323 GBV_ILN_4324 GBV_ILN_4325 GBV_ILN_4326 GBV_ILN_4335 GBV_ILN_4338 GBV_ILN_4367 GBV_ILN_4700 AR 9 2022 1 |
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HF5001-6182 HD28-70 Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia ESG rating F4GBM Index Public listed firms Malaysia Bursa Malaysia |
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Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia |
abstract |
Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. |
abstractGer |
Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. |
abstract_unstemmed |
Environmental, Social and Governance (ESG) ratings are widely recognised methods to assess the sustainability practices of corporations. However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy. |
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Financial factors influencing environmental, social and governance ratings of public listed companies in Bursa Malaysia |
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However, the scores of these ratings are not satisfactory in emerging market economies. This study examines the financial factors that influence ESG ratings regarding public listed companies on the FTSE4 Good Bursa Malaysia Index (F4GBM Index). This paper uses static and dynamic Generalized Method of Moments (GMM) techniques to analyse the data of 31 public listed companies on the F4GBM Index and reported full ESG ratings data for the period 2007–2016. To utilise the maximum number of observations by avoiding the missing data and outlier due to COVID-19, this study applied the sample data up to 2016. Using the two-step system dynamic GMM estimator, such results indicate that highly profitable Malaysian companies enjoy a higher score for ESG overall ratings as well as all three individual ratings. Poorer credit management diminishes the environmental ratings, yet increases overall scores such as the social and governance scores. Companies with higher leverage have a weaker social, governance and overall score, but a higher environmental rating. Finally, companies eliciting a higher sustainable growth rate have weak governance and overall scores. This study provides empirical evidence that will be useful to capital market investors, management teams of these companies and policymakers in their efforts to promote responsible investment in Malaysian public listed companies in line with UN-PRI policy.</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">ESG rating</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">F4GBM Index</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Public listed firms</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Malaysia</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Bursa Malaysia</subfield></datafield><datafield tag="653" ind1=" " ind2="0"><subfield code="a">Business</subfield></datafield><datafield tag="653" ind1=" " ind2="0"><subfield code="a">Management. 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score |
7.40077 |