Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries

The skewed research attention of past literature relatively failed to emphasize on the true objective of firms’ social responsibility; which is upholding stakeholders’ wellbeing. Hence, this study investigated the efficiency of firms in giving back to the masses. Primarily, this study examined firms...

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Main Authors: Ali, Muhammad Hafiz, Abdul Rahim, Norhuda, Yahya, Mohamed Hisham, Kamarudin, Fakarudin
Format: Article
Published: UiTM Press 2022
Online Access:http://psasir.upm.edu.my/id/eprint/100930/
https://mar.uitm.edu.my/index.php/current-issue/27-cv21n02/175-av21n02-6
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spelling my.upm.eprints.1009302023-07-13T08:04:15Z http://psasir.upm.edu.my/id/eprint/100930/ Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries Ali, Muhammad Hafiz Abdul Rahim, Norhuda Yahya, Mohamed Hisham Kamarudin, Fakarudin The skewed research attention of past literature relatively failed to emphasize on the true objective of firms’ social responsibility; which is upholding stakeholders’ wellbeing. Hence, this study investigated the efficiency of firms in giving back to the masses. Primarily, this study examined firms’ social performance (SP) efficiency by using Data Envelopment Analysis (DEA). Next, by using Panel Regression Analysis; this study investigated the determinants of SP efficiency (internally and externally), based on Institutional Theory. The study focused on both ESG and non-ESG firms in Malaysia and Singapore from 2010 to 2019. First, novelties on SP efficiency are that both countries’ ESG firms are far more efficient in giving back to the masses, compared to non-ESG firms. Additionally, firms’ SP efficiency is significantly influenced by firm’s pure technical inefficiency in directing their financial returns toward ESG contribution. Second, for determinants of SP efficiency; the study yielded findings that are unique to each country. Both firm characteristics (internal) and country characteristics (external) had a significant influence of Malaysia’s ESG firms. While, only country characteristics were significant influence of Singapore’s ESG firms. Moreover, only firm characteristics were found to be significant predictors of SP efficiency for both countries’ non-ESG firms. UiTM Press 2022-08 Article PeerReviewed Ali, Muhammad Hafiz and Abdul Rahim, Norhuda and Yahya, Mohamed Hisham and Kamarudin, Fakarudin (2022) Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries. Management And Accounting Review, 21 (2). 129 - 165. ISSN 2600-7975; ESSN: 2550-1895 https://mar.uitm.edu.my/index.php/current-issue/27-cv21n02/175-av21n02-6 10.24191/MAR.V21i02-06
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description The skewed research attention of past literature relatively failed to emphasize on the true objective of firms’ social responsibility; which is upholding stakeholders’ wellbeing. Hence, this study investigated the efficiency of firms in giving back to the masses. Primarily, this study examined firms’ social performance (SP) efficiency by using Data Envelopment Analysis (DEA). Next, by using Panel Regression Analysis; this study investigated the determinants of SP efficiency (internally and externally), based on Institutional Theory. The study focused on both ESG and non-ESG firms in Malaysia and Singapore from 2010 to 2019. First, novelties on SP efficiency are that both countries’ ESG firms are far more efficient in giving back to the masses, compared to non-ESG firms. Additionally, firms’ SP efficiency is significantly influenced by firm’s pure technical inefficiency in directing their financial returns toward ESG contribution. Second, for determinants of SP efficiency; the study yielded findings that are unique to each country. Both firm characteristics (internal) and country characteristics (external) had a significant influence of Malaysia’s ESG firms. While, only country characteristics were significant influence of Singapore’s ESG firms. Moreover, only firm characteristics were found to be significant predictors of SP efficiency for both countries’ non-ESG firms.
format Article
author Ali, Muhammad Hafiz
Abdul Rahim, Norhuda
Yahya, Mohamed Hisham
Kamarudin, Fakarudin
spellingShingle Ali, Muhammad Hafiz
Abdul Rahim, Norhuda
Yahya, Mohamed Hisham
Kamarudin, Fakarudin
Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
author_facet Ali, Muhammad Hafiz
Abdul Rahim, Norhuda
Yahya, Mohamed Hisham
Kamarudin, Fakarudin
author_sort Ali, Muhammad Hafiz
title Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
title_short Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
title_full Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
title_fullStr Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
title_full_unstemmed Determinants of social performance efficiency of ESG and Non-ESG firms: evidence from Southeast Asian countries
title_sort determinants of social performance efficiency of esg and non-esg firms: evidence from southeast asian countries
publisher UiTM Press
publishDate 2022
url http://psasir.upm.edu.my/id/eprint/100930/
https://mar.uitm.edu.my/index.php/current-issue/27-cv21n02/175-av21n02-6
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score 13.211869