Disclosure of Environmental, Social, and Governance on Firm Performance Pre and Post Introduction of Integrated Reporting: Evidence from ASEAN Countries

Abstract

The debate among researchers is still on-going regarding the impact of ESG on firm performance. Therefore, this study aims to investigate the effect of Environmental, Social, and Governance (ESG) Disclosure towards Firm Performance in ASEAN countries before and after Integrated Reporting (<IR>) introduction. Also, this study aims to explore the <IR> whether it moderates the relationship between ESGD and FP. This study focused on ASEAN countries with the selected sample criteria using purposive sampling technique. The 190 samples are obtained from Thomson Reuters from 2006 – 2020 (exclude 2013) obtained from Stock Exchange of each country. The researcher uses multiple linear regression analysis with the fixed effect model. Due to having heteroscedasticity, the regression needs to be standardized by using Robust Standard Error. The findings indicate that the ESG Disclosure has insignificant impact to the Firm Performance although the coefficient shows the positive sign. The second findings are <IR> does not moderate the ESGD and FP however their relationship shows positive relationship. Although the result is not significant, the positive relationship may indicate that companies who implement <IR> have better firm value and improved in firm performance.