Skip Navigation Links
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal


Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email:

The Relationship Between Environmental, Social and Governance (ESG) Disclosure and Financial Performance: Evidence from Thailand

Journal of Environmental Accounting and Management 11(1) (2023) 63--74 | DOI:10.5890/JEAM.2023.03.005

Muttanachai Suttipun, Thanyaorn Yordudom, Rojana Khunkaew

Download Full Text PDF



The study aimed to investigate the level and pattern of environmental, social and governance (ESG) disclosure in annual report of listed companies in the Stock Exchange of Thailand (SET), and to examine the relationship between ESG disclosure and Thai corporate financial performance. The population was all listed companies in the SET. Using annual reports during 2015 to 2019, content analysis by word counting was used to quantify the level and pattern of ESG disclosure in corporate annual reports, while financial performance was measured by corporate net income. Descriptive analysis, independent sample t-test, correlation matrix, and panel data analysis were used to analyze the data of this study. The results found that there was an increase of ESG disclosure in annual reporting during 2015 to 2019 by listed companies in the SET. The most common ESG disclosure was governance information disclosure following by social and environmental information disclosures. Moreover, there was the significantly positive relationship between ESG disclosure and corporate financial performance. Using control variables, stock reaction, firm age, firm risk, and ESG group had a positive correlation with corporate financial performance. The Findings can demonstrate that stakeholder theory can be used to explain the benefit of ESG disclosure, although the disclosure is still voluntary reporting in Thailand.


  1. [1]  The Stock Exchange of Thailand (SET). (2015), ESG Disclosure. Retrieved from
  2. [2]  Association of Thai Securities Companies. (2018), Good Corporate Governance and Sustainability Development. Retrieved from htto://
  3. [3]  Suttipun, M. and Saefu, S. (2017), Investigation of sufficiency economy philosophy reporting in Thailand, DLSU Business $\&$ Economics Review, 26(2), 53-65.
  4. [4]  Emeseh, E. and Songi, O. (2014), CSR, human rights abuse and sustainability report accountability, International Journal of Law and Management, 56(2), 136-151.
  5. [5]  Connelly, S.S. and Limpaphayom, P. (2004), Environmental reporting and firm performance: evidence from Thailand, The Journal of Corporate Citizenship, 13(1), 137-149.
  6. [6]  Suttipun, M. and Nutaphon, C. (2014), Corporate social responsibility reporting on websites in Thailand, Kasetsart Journal of Social Sciences, 35(3), 536-549.
  7. [7]  Suttipun, M. (2012), Triple bottom line reporting in annual reports: a case study of companies listed on the stock exchange of Thailand (SET), Asian Journal of Financial $\&$ Accounting, 4(1), 69-92.
  8. [8]  Suttipun, M. and Saelee, S. (2015), An effect of corporate governance on sustainable development reporting in Thailand, Corporate Ownership and Control, 13(10), 696-704.
  9. [9]  Suttipun, M. (2018), Association between board composition and intellectual capital disclosure: an evidence from Thailand, Journal of Business Administration, 41(160), 74-97.
  10. [10]  Abdi, Y., Li, X., and C\`{a}mara-Turull, X. (2021), Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age, Environment, Development and Sustainability, 24(4), 5052-5079.
  11. [11]  Abdi, Y., Li, X., and C\`{a}mara-Turull, X. (2020), Impact of sustainability on firm value and financial performance in the air transport industry, Sustainability, 12(23), 9957.
  12. [12]  Garcia-Castro, B., Arino, M.A., and Canela, M.A. (2010), Does social performance really lead to financial performance? Accounting for endogeneity, Journal of Business Ethics, 92(1), 107-126.
  13. [13]  Rahman, S., Yusoft, R.B., and Mohamed, W.N.B.W. (2010), Environmental disclosures and financial performance: an empirical study of Malaysia, Thailand, and Singapore, Social and Environmental Accountability Journal, 29(2), 46-58.
  14. [14]  Timothy F.S. (2011), The Triple Bottom Line: What Is It and How Does It Work? Indiana Business Research Center, Indiana University Kelley School of Business
  15. [15]  Ekwueme, C.M., Egbunike, C.F., and Onyali, C.I. (2013), Benefits of triple bottom line disclosures on corporate performance: an exploratory study of corporate stakeholders, Journal of Management and Sustainability, 3(2), 201-230.
  16. [16]  Wright, P. and Ferris, S. (1997), Agency conflict and corporate strategy: the effect of divestment on corporate value, Strategic Management Journal, 18(1), 77-83.
  17. [17]  Hossain, M. and Hammami, H. (2009), Voluntary disclosure in the annual reports of an emerging country: the case of Qatar, Advances in Accounting, incorporating Advances in International Accounting, 25(1), 255-265.
  18. [18]  Kusuma, A.P. and Koesrindartoto, D.P. (2014), Sustainability practices and financial performance: An empirical evidence from Indonesia, International Conference on Trends in Economics, Humanities and Management, (ICTEHM'14), 14, 11-15.
  19. [19]  Malarvizhi, P. and Matta, R. (2016), Link between corporate environmental disclosure and firm performance--perception or reality? The British Accounting Review, 36(1), 107-117.
  20. [20]  Joshi, P.L. and Gao, S.S. (2009), Multinational corporate social and environmental disclosures (CSED) on web sites. International Journal of Commerce $\&$ Management, 19(1), 27-44.
  21. [21]  Caroline, F. (2012), Corporate social responsibility and stock prices: the environmental awareness of shareholders, Academy of Management Journal, 56(3), 758-781.
  22. [22]  Suttipun, M. and Sittidate, N. (2016), Corporate social responsibility reporting and operation performance of listed companies in the stock exchange of Thailand. Songklanakarin Journal of Social Science and Humanities, 22(1), 1-24.
  23. [23]  Islam, M. and Deegan, C. (2010), Media pressures and corporate disclosure of social responsibility performance information: a study of two global clothing and sports retail companies, Accounting and Business Research, 40(2), 131-148.
  24. [24]  Di Danto, F. and Izzo, M.F. (2012), The Relation between Corporate Social Responsibility and Stock Prices: An Analysis of the Italian Listed Companies, Working paper available at:
  25. [25]  Brown, H.S. and Deegan, C. (1998), The public disclosure of environmental performance information: a dual test of media agenda setting theory and legitimacy theory, Accounting and Business Review, 29(1), 21-41.
  26. [26]  Brown, H.S., DeJong, M., and Levy, D.L. (2009), Building institutions based on information disclosure: lessons from GRI's sustainable reporting, Journal of Cleaner Production, 17, 571-580.
  27. [27]  Almeyda, R. and rmansya, A. (2019), The Influence of environmental, social, and governance (ESG) disclosure on firm financial performance, IPTEK Journal of Proceedings Series, 5(5), 278-290.
  28. [28]  Bronson, S.N., Carcello, J.V., and Reghunandan, K. (2006), Firm characteristics and voluntary management reports on internal control, A Journal of Practice $\&$ Theory, 25(2), 25-39.
  29. [29]  Brecht, D.V. (2018), Exploring the link between environmental, social and governance (ESG) disclosure and market value of the firm: evidence from Thai listed companies, ASEAN Journal of Management $\&$ Innovation, 5(1), 95-106.
  30. [30]  Deegan, C. (2001), Financial Accounting Theory, McGraw-Hill Book Company Australia Pty Limited, Roseville, Australia.
  31. [31]  Gray, R., Collison, D., and Bebbington, J. (1998), Environmental and social accounting and reporting, Financial Reporting Today: Current and Emerging Issues. London, ICAEW.
  32. [32]  Chouaibi, S., Chouaibi, J., and Rossi, M. (2021), ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law, EuroMed Journal of Business, ahead-of-print(ahead-of-print), DOI:10.1108/EMJB-09-2020-0101
  33. [33]  The Stock Exchange of Thailand (SET). (2019), Lists of Companies Listed in the SET. Retrieved from
  34. [34]  Suttipun, M. (2020), The factors influencing key audit matters reporting in Thailand, Asian Journal of Accounting Perspectives, 13(1), 23-36.
  35. [35]  Krippendorf, K. (1980), Content analysis: an introduction to its methodology, Sage, New York.
  36. [36]  Hodkam, S. (2016), The Study of Relationship between the Level of Sustainability Report Disclosure and Security Prices of Listed Companies in the Stock Exchange of Thailand, (Master's thesis). Graduate School of Commerce, Burapha University.
  37. [37]  Huaypad, S. (2019), The relationship between the quality of social responsibility disclosure and stock price of firms listed in the stock exchange of Thailand, Journal of Modern Management Science, 12(2), 53-67.
  38. [38]  Lee, M.T. (2016), Corporate social responsibility and stock price crash risk: Evidence from an Asian emerging market, Managerial Finance, 42(10), 963-979.
  39. [39]  Wiliandri, R. (2011), Effect of block holder ownership and firm size on corporate debt policy, Journal of Business Economics, 16(2), 95-102.
  40. [40]  Murniati, S. (2016), Effect of capital structure, company size and profitability on stock price of food and beverage companies listed on the Indonesia stock exchange, Information Management and Business Review, 8(1), 23-29.
  41. [41]  Purnamawati, I.G. (2016), The effect of capital structure and profitability on stock price: study of the manufacturing sector in Indonesia stock exchange, International Journal of Business, Economics and Law, 9(1), 10-16.
  42. [42]  Song, H. J., Yeon, J., and Lee, S. (2021), Impact of the COVID-19 pandemic: evidence from the U.S. restaurant industry, International Journal of Hospitality Management, 92, 102702,
  43. [43]  Moneva, J.M., Bonilla-Priego, M.J., and Ortas, E. (2020), Corporate social responsibility and organisational performance in the tourism sector, Journal of Sustainable Tourism, 28(6), 853-872.