Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)

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Effect of Environmental, Social, and Governance Factors on Stock Returns in ASEAN Firms

Authors
Denny Andriana1, *, Aristanti Widyaningsih1, Budi S. Purnomo1, Godwin Ahiase1
1Universitas Pendidikan Indonesia, Bandung, Indonesia
*Corresponding author. Email: denny.andriana@upi.edu
Corresponding Author
Denny Andriana
Available Online 12 September 2025.
DOI
10.2991/978-94-6463-817-2_108How to use a DOI?
Keywords
Environmental Pillar Score; ESG Score; Governance Pillar Score; Social Pillar Score; Stock Returns
Abstract

This study examines the influence of Environmental, Social, and Governance (ESG) factors on the stock returns of listed firms in the ASEAN region. This study effectively addresses endogeneity concerns and improves the accuracy of estimations by utilizing the Generalized Method of Moments (GMM) on a dataset consisting of 412 firms across six ASEAN countries from 2012 to 2022. The findings reveal a statistically significant and favorable association between ESG ratings and stock returns. Environmental and social factors had the greatest impact. Companies with higher ESG ratings have better financial success, supporting the idea that including ESG aspects in their investment strategies may enhance returns. Robustness tests provide further evidence of the durability of these connections, indicating that variations in model assumptions do not substantially affect the influence of ESG on stock returns. This study provides comprehensive insights into the benefits of ESG practices in emerging economies and significantly contributes to the existing body of knowledge. Furthermore, it highlights the need to promote sustainable and responsible company practices to achieve exceptional financial success. The results of this study hold essential consequences for politicians, investors, and scholars who support the integration of ESG elements into company plans and investment choices.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
12 September 2025
ISBN
978-94-6463-817-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-817-2_108How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Denny Andriana
AU  - Aristanti Widyaningsih
AU  - Budi S. Purnomo
AU  - Godwin Ahiase
PY  - 2025
DA  - 2025/09/12
TI  - Effect of Environmental, Social, and Governance Factors on Stock Returns in ASEAN Firms
BT  - Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
PB  - Atlantis Press
SP  - 927
EP  - 932
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-817-2_108
DO  - 10.2991/978-94-6463-817-2_108
ID  - Andriana2025
ER  -