ESG, Firm Value, and Life Cycle: Evidences from South East Asia

Areta Xaviera; Rahmat Febrianto; Erna Widiastuty; Iswardi Iswardi

doi:10.24815/jdab.v11i2.40449

ESG, Firm Value, and Life Cycle: Evidences from South East Asia

Areta Xaviera, Rahmat Febrianto, Erna Widiastuty, Iswardi Iswardi

Abstract

This study investigates the impact of ESG performance on future firm value, considering the company's phase in the life cycle. The sample consists of non-financial companies listed in five Southeast Asian (SEA) countries. Data were collected from the Refinitiv Eikon Database, with samples determined using a purposive sampling technique. The study covers the period from 2013 to 2022, resulting in 1,080 firm-year observations. Using multiple regression analysis, the study finds that ESG performance is related to the next year's firm value in SEA companies. ESG performance impacts firm value only when the company is in the mature stage, while mixed relationships were observed when individual ESG dimensions were tested. These findings support the notion that the effects of ESG-related performance may not be immediately reflected in the current year’s firm value but rather in the future.

Keywords

Corporate governance; environmental; ESG; firm life cycle; firm value

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DOI: https://doi.org/10.24815/jdab.v11i2.40449

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Accounting Department collaborated with IAI KAPd (Institute of Indonesia Chartered Accountant)
Faculty of Business and Economics
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
ISSN: 2355-9462, E-ISSN: 2528-1143

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