Proceedings of the International Conference on Contemporary Risk Studies (ICONIC-RS 2025)

International Conference on Contemporary Risk Studies (ICONIC-RS 2025)

📍Jakarta, Indonesia🗓️ 8 October 2025
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The Impact of ESG on Stock Misvaluation and Capital Structure in Publicly Listed Companies Across Five ASEAN Countries (2019–2023): Evidence Suggesting ESG Enhances Market Efficiency

Authors
Ghina Farha Fasya Ataya1, Dewi Hanggraeini2, *
1Faculty of Economics and Business, Universitas Indonesia, Jakarta, Indonesia
2Faculty of Economics and Business, Universitas Indonesia, Jakarta, Indonesia
*Corresponding author. Email: dewi.hanggraeni@ui.ac.id
Corresponding Author
Dewi Hanggraeini
Available Online 8 July 2026.
DOI
10.2991/978-2-38476-595-9_2How to use a DOI?
Keywords
ESG; Stock Misvaluation; Capital Structure; ASEAN Emerging Markets; Panel Data Analysis
Abstract

This study aims to analyze the effect of Environmental, Social, and Governance (ESG) scores on stock misvaluation and its impact on the capital structure of companies in five emerging ASEAN countries, namely Indonesia, Malaysia, Thailand, the Philippines, and Vietnam, during the period 2019–2023. The study adopts a quantitative method using an unbalanced panel dataset of 320 companies and applies Fixed Effect regression and Two-Stage Least Squares (2SLS) models to address endogeneity issues. The main variables tested include ESG scores and their three component pillars, stock misvaluation indicators (based on the residual income model and analyst target prices), capital structure (changes in debt and equity, as well as the Debt-to-Equity ratio), with information asymmetry and market sentiment as moderating variables. The research results show that ESG performance has a significantly negative impact on stock misvaluation, where an increase in ESG indicates a decrease in misvaluation, suggesting that stronger ESG performance enhances market pricing efficiency. Additionally, the Governance pillar significantly affects capital structure through the debt-to-equity ratio.

Copyright
© 2026 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 Contemporary Risk Studies (ICONIC-RS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
8 July 2026
ISBN
978-2-38476-595-9
ISSN
2352-5428
DOI
10.2991/978-2-38476-595-9_2How to use a DOI?
Copyright
© 2026 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  - Ghina Farha Fasya Ataya
AU  - Dewi Hanggraeini
PY  - 2026
DA  - 2026/07/08
TI  - The Impact of ESG on Stock Misvaluation and Capital Structure in Publicly Listed Companies Across Five ASEAN Countries (2019–2023): Evidence Suggesting ESG Enhances Market Efficiency
BT  - Proceedings of the  International Conference on Contemporary Risk Studies (ICONIC-RS 2025)
PB  - Atlantis Press
SP  - 4
EP  - 23
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-595-9_2
DO  - 10.2991/978-2-38476-595-9_2
ID  - Ataya2026
ER  -