Proceedings of the International Conference on Environmental, Social, and Governance (ICESG 2024)

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Are Companies with Higher ESG Scores More Likely to Generate Higher Revenue and Pay More Dividends? Evidence from Malaysia

Authors
Kelvin Lee Yong Ming1, *, Nor Shaipah Binti Abdul Wahab1, Woon Leong Lin2, Yong Jing Yi2, Nelvin Leow XeChung2
1School of Accounting and Finance, Taylor’s University, Subang Jaya, Malaysia
2School of Management and Marketing, Taylor’s University, Subang Jaya, Malaysia
*Corresponding author. Email: kelvinyongming.lee@taylors.edu.my
Corresponding Author
Kelvin Lee Yong Ming
Available Online 31 January 2025.
DOI
10.2991/978-2-38476-358-0_3How to use a DOI?
Keywords
ESG; Revenue; Dividend Yield
Abstract

Environmental, Social, and Governance (ESG) criteria are increasingly recognized as vital indicators of a company's sustainability. As stakeholders demand greater transparency and responsibility, ESG metrics have become crucial in evaluating corporate behavior and its broader impacts on society and the environment. This study aims to investigate the effects of ESG on the dividend yield and revenue of listed companies in Malaysia. The findings of this study reveal that a company with better social score pays lower dividends. This finding suggests that companies with higher social scores are more likely to invest in social initiatives and corporate social responsibility activities. These investments can be costly and may reduce the available cash flow that could otherwise be distributed as dividends to shareholders. Consequently, these companies might choose to retain earnings to support ongoing or future social projects rather than distributing them as dividends. The findings of this study underscore the need for policymakers to encourage sustainable business practices through supportive regulations and incentives, fostering a corporate landscape where ESG excellence is not just rewarded but becomes a fundamental expectation.

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 International Conference on Environmental, Social, and Governance (ICESG 2024)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 January 2025
ISBN
978-2-38476-358-0
ISSN
2352-5398
DOI
10.2991/978-2-38476-358-0_3How 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  - Kelvin Lee Yong Ming
AU  - Nor Shaipah Binti Abdul Wahab
AU  - Woon Leong Lin
AU  - Yong Jing Yi
AU  - Nelvin Leow XeChung
PY  - 2025
DA  - 2025/01/31
TI  - Are Companies with Higher ESG Scores More Likely to Generate Higher Revenue and Pay More Dividends? Evidence from Malaysia
BT  - Proceedings of the International Conference on Environmental, Social, and Governance (ICESG 2024)
PB  - Atlantis Press
SP  - 23
EP  - 32
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-358-0_3
DO  - 10.2991/978-2-38476-358-0_3
ID  - Ming2025
ER  -