Sustainability practices and enterprise value: evidence of Thai listed oil companies in the Stock Exchange of Thailand
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Abstract
This study aims to investigate how sustainability practices affect enterprise value of Thai listed oil firms during 2018 - 2023. With the use of data from 12 Thai listed oil companies. Panel-data regression analysis, an advanced quantitative research method, is adopted to test these relationships with the hypotheses suggesting positive impacts from ESG factors and a negative impact from the pandemic. Key findings are that Systematic SDG’s Actions have a significant positive effect on both P/BV ratio and Tobin’s Q at a 95% confident level (P-value = 0.039) and at a 99% confident level (P-value = 0.0001) respectively. The research model using Tobin’s Q as the dependent variable, however, better fits with empirical data in this study. Crucial recommendations are threefold. Firstly, regulators, oil companies, and investors need comprehensive materiality assessments and actively engage in sustainability activities, emphasizing substantive involvement over mere ESG recognition. Secondly, companies shall integrate UN SDGs into corporate strategies by setting decisive measurable goals, action plans, control processes and, in turn, regularly report performances to relevant stakeholders. Lastly, future empirical studies could examine the relationship between sustainability and enterprise value with different industries and different business environment settings to compare research results and address generalizations.
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