This study investigates the influence of Environmental, Social, and Governance Disclosures (ESGD) on the profitability of firms, using a sample of 385 publicly listed companies on the Thai Stock Exchange. Data from 2018 to 2022 is sourced from the Bloomberg database, focusing on ESGD scores as indicators of companies’ ESG commitments. The study utilizes a structural equation model to examine the relationships between independent variables; ESGD, Earnings Per Share (EPS), Debt to Assets ratio (DA), Return on Investment Capital (ROIC), Total Assets (TA), and dependent variables Tobin’s Q (TBQ) and Return on Assets (ROA). The analysis reveals a positive relationship between ESGD and TBQ, but not with ROA. Further exploration is conducted to determine if different ESGD levels (high, medium, low) yield consistent effects on TBQ. The findings indicate discrepancies: high and medium ESGD levels are associated with a negative impact on TBQ when EPS increased, whereas low ESGD levels correlate with an increase in TBQ with rising EPS. This nuanced approach challenges the conventional uniform treatment of ESGD in previous research and provides a deeper understanding of how varying commitments to ESG practices affect a firm’s market valuation and profitability. These insights are crucial for firm management, highlighting the importance of ESGD in relation to other financial variables and their effects on market value. This study offers a new perspective on ESGD’s impact, emphasizing the need for differentiated strategies based on ESG commitment levels.

Al-Khouri, R., & Abdul Basith, A. A. (2022). The Status of Environmental, Social, and Governance Voluntary Disclosure in the GCC Banking Industry: Does It Pay to Be Socially Responsible? Empirical Research in Banking and Corporate Finance, 155–189. https://doi.org/10.1108/s1569-373220220000021006

Al-Maliki, R., Salehi, M., & Kardan, B. (2023). The relationship between managerial entrenchment, social responsibility, and firm’s risk-taking and shareholders’ activity. Social Responsibility Journal, 18(5), 1035-1049.

Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. (2020). Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure. Sustainability, 12(9), 3910. https://doi.org/10.3390/su12093910

Arianpoor, A., Salehi, M., & Daroudi, F. (2023). Nonfinancial sustainability reporting, management legitimate authority and enterprise value. Social Responsibility Journal, 19(10), 1900–1916. https://doi.org/10.1108/srj-09-2022-0374

Arvidsson, S., & Dumay, J. (2022). Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice? Business Strategy and the Environment, 31(3), 1091–1110. Portico. https://doi.org/10.1002/bse.2937

Bagh, T., Fuwei, J., & Khan, M. A. (2024). From risk to resilience: Climate change risk, ESG investments engagement and Firm’s value. Heliyon, 10(5), e26757. https://doi.org/10.1016/j.heliyon.2024.e26757

Bagh, T., Naseer, M. M., Khan, M. A., et al. (2023). Sustainable growth rate, corporate value of US firms within capital and labor market distortions: The moderating effect of institutional quality. Oeconomia Copernicana, 14(4), 1211–1255. https://doi.org/10.24136/oc.2023.036

Barko, T., Cremers, M., & Renneboog, L. (2021). Shareholder Engagement on Environmental, Social, and Governance Performance. Journal of Business Ethics, 180(2), 777–812. https://doi.org/10.1007/s10551-021-04850-z

Bloomberg Professional Services. (2022). Available online: https://www.bloomberg.com/professional/blog/how-bloomberg-is-applying-its-data-expertise-to-esg/ (accessed on 2 January 2024).

Camilleri, M. A. (2015). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242. https://doi.org/10.1108/sampj-10-2014-0065

Carnini Pulino, S., Ciaburri, M., Magnanelli, B. S., et al. (2022). Does ESG Disclosure Influence Firm Performance? Sustainability, 14(13), 7595. https://doi.org/10.3390/su14137595

Chen, Z., & Xie, G. (2022). ESG disclosure and financial performance: Moderating role of ESG investors. International Review of Financial Analysis, 83, 102291. https://doi.org/10.1016/j.irfa.2022.102291

Chevrollier, N., Zhang, J., van Leeuwen, T., et al. (2020). The predictive value of strategic orientation for ESG performance over time. Corporate Governance: The International Journal of Business in Society, 20(1), 123–142. https://doi.org/10.1108/cg-03-2019-0105

Dkhili, H. (2023). Does environmental, social and governance (ESG) affect market performance? The moderating role of competitive advantage. Competitiveness Review: An International Business Journal, 34(2), 327–352. https://doi.org/10.1108/cr-10-2022-0149

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65. https://doi.org/10.2307/258887

Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. The Pacific Sociological Review, 18(1), 122–136. https://doi.org/10.2307/1388226

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.

Giannarakis, G., Konteos, G., & Sariannidis, N. (2014). Financial, governance and environmental determinants of corporate social responsible disclosure. Management Decision, 52(10), 1928–1951. https://doi.org/10.1108/md-05-2014-0296

Harrison, J. S., & Wicks, A. C. (2013). Stakeholder Theory, Value, and Firm Performance. Business Ethics Quarterly, 23(1), 97–124. https://doi.org/10.5840/beq20132314

Hill, J. (2020). Environmental, Social, and Governance (ESG) investing: A balanced analysis of the theory and practice of a sustainable portfolio. Academic Press.

Hoang, T. (2018). The role of the integrated reporting in raising awareness of environmental, social and corporate governance (ESG) performance. In: Stakeholders, Governance and Responsibility. Emerald Publishing Limited.

Hua, Y. (2022). How corporate ESG performance affects green supply chain management. BCP Business & Management, 25, 550–559. https://doi.org/10.54691/bcpbm.v25i.1881

Huang, D. Z. X. (2022). An integrated theory of the firm approach to environmental, social and governance performance. Accounting & Finance, 62, 1567-1598.

Hummel, K., & Schlick, C. (2016). The relationship between sustainability performance and sustainability disclosure – Reconciling voluntary disclosure theory and legitimacy theory. Journal of Accounting and Public Policy, 35(5), 455–476. https://doi.org/10.1016/j.jaccpubpol.2016.06.001

Kenny, F., Nurcholifah, S., & Pulungan, A. H. (2022). Disclosure of environmental, social, and governance on firm performance pre and post introduction of integrated reporting: Evidence from ASEAN countries. International Journal of Energy Economics and Policy, 12(6), 377.

Khandelwal, V., Sharma, P., & Chotia, V. (2023). ESG Disclosure and Firm Performance: An Asset-Pricing Approach. Risks, 11(6), 112. https://doi.org/10.3390/risks11060112

Kurniawan, I., & Rokhim, R. (2023). Is ESG Companies’ Performance Influenced by Ownership Structure? Evidence in ASEAN. Interdisciplinary Social Studies, 2(9), 2397–2413. https://doi.org/10.55324/iss.v2i9.485

Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder Theory: Reviewing a Theory That Moves Us. Journal of Management, 34(6), 1152–1189. https://doi.org/10.1177/0149206308324322

Lowry, P. B., & Gaskin, J. (2014). Partial Least Squares (PLS) Structural Equation Modeling (SEM) for Building and Testing Behavioral Causal Theory: When to Choose It and How to Use It. IEEE Transactions on Professional Communication, 57(2), 123–146. https://doi.org/10.1109/tpc.2014.2312452

Magness, V. (2006). Strategic posture, financial performance and environmental disclosure. Accounting, Auditing & Accountability Journal, 19(4), 540–563. https://doi.org/10.1108/09513570610679128

Makhdalena., Zulvina, D., Zulvina, Y., et al. (2023). Environmental, Social, Governance, and Firm Performance in Developing Countries: Evidence from Southeast Asian. Etikonomi, 22(1), 65–78. https://doi.org/10.15408/etk.v22i1.25271

Marcoulides, K. M., & Yuan, K. H. (2017). New ways to evaluate goodness of fit: A note on using equivalence testing to assess structural equation models. Structural Equation Modeling: A Multidisciplinary Journal, 24(1), 148–153. https://doi.org/10.1080/10705511.2016.1225260

Matos, P. (2020). ESG and responsible institutional investing around the world: A critical review. CFA Institute Research Foundation.

Means, G. (2017). The modern corporation and private property. Routledge.

Meckling, W. H., & Jensen, M. C. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.

Mendiratta, A., Singh, S., Yadav, S. S., & Mahajan, A. (2023). ESG Controversies and Firm Performance in India: The Moderating Impact of Government Effectiveness. Global Business Review, 09721509231151490.

Narula, R. (2020). Policy opportunities and challenges from the COVID-19 pandemic for economies with large informal sectors. Journal of International Business Policy, 3(3), 302-310.

Nuhu, Y., & Alam, A. (2024). Board characteristics and ESG disclosure in energy industry: Evidence from emerging economies. Journal of Financial Reporting and Accounting, 22(1), 7–28. https://doi.org/10.1108/jfra-02-2023-0107

Palupi, A. (2023). Does ESG Affect the Firm Value? Accounting & Finance Review, 7(4), 19-26.

Papoutsi, A., & Sodhi, M. S. (2020). Does disclosure in sustainability reports indicate actual sustainability performance? Journal of Cleaner Production, 260, 121049. https://doi.org/10.1016/j.jclepro.2020.121049

Passetti, E., Cinquini, L., & Tenucci, A. (2018). Implementing internal environmental management and voluntary environmental disclosure. Accounting, Auditing & Accountability Journal, 31(4), 1145–1173. https://doi.org/10.1108/aaaj-02-2016-2406

Peng, L. S., & Isa, M. (2020). Environmental, social and governance (ESG) practices and performance in Shariah firms: agency or stakeholder theory? Asian Academy of Management Journal of Accounting & Finance, 16(1), 1-34.

Phoprachak, D., Buntornwon, T. (2020). Influence of Firm Size on the Environmental Disclosure and Performance of the Listed Companies on the Stock Exchange of Thailand. In: Díaz Díaz, B., Capaldi, N., Idowu, S. O., Schmidpeter, R. (editors). Responsible Business in a Changing World. CSR, Sustainability, Ethics & Governance. Springer, Cham.

Salehi, M., & Alkhyyoon, H. (2022). The relationship between managerial entrenchment, social responsibility, and firm’s risk-taking and shareholders’ activity. Social Responsibility Journal, 18(5), 1035–1049. https://doi.org/10.1108/srj-10-2019-0339

Salehi, M., Lari DashtBayaz, M., & Khorashadizadeh, S. (2018). Corporate social responsibility and future financial performance. EuroMed Journal of Business, 13(3), 351–371. https://doi.org/10.1108/emjb-11-2017-0044

Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: categories and interactions. Business Strategy and the Environment, 20(4), 222–237. Portico. https://doi.org/10.1002/bse.682

Schot, J., & Steinmueller, W. E. (2018). Three frames for innovation policy: R&D, systems of innovation and transformative change. Research Policy, 47(9), 1554–1567. https://doi.org/10.1016/j.respol.2018.08.011

Sciarelli, M., Cosimato, S., Landi, G., et al. (2021). Socially responsible investment strategies for the transition towards sustainable development: the importance of integrating and communicating ESG. The TQM Journal, 33(7), 39–56. https://doi.org/10.1108/tqm-08-2020-0180

Şeker, Y., & Şengür, E. D. (2021). The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence. Ekonomika, 100(2), 190–212. https://doi.org/10.15388/ekon.2021.100.2.9

Shafeeq Nimr Al-Maliki, H., Salehi, M., & Kardan, B. (2023). The relationship between board characteristics and social responsibility with firm innovation. European Journal of Management and Business Economics, 32(1), 113–129. https://doi.org/10.1108/ejmbe-04-2020-0094

Singhania, M., & Saini, N. (2023). Institutional framework of ESG disclosures: comparative analysis of developed and developing countries. Journal of Sustainable Finance & Investment, 13(1), 516–559. https://doi.org/10.1080/20430795.2021.1964810

Skordoulis, M., Ntanos, S., Kyriakopoulos, G. L., et al. (2020). Environmental Innovation, Open Innovation Dynamics and Competitive Advantage of Medium and Large-Sized Firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 195. https://doi.org/10.3390/joitmc6040195

Suttipun, M., & Dechthanabodin, P. (2022). Environmental, Social and Governance (ESG) Committees and Performance in Thailand. Asian Journal of Business and Accounting, 15(2), 205–220. https://doi.org/10.22452/ajba.vol15no2.7

Tarmuji, I., Maelah, R., & Tarmuji, N. H. (2016). The Impact of Environmental, Social and Governance Practices (ESG) on Economic Performance: Evidence from ESG Score. International Journal of Trade, Economics and Finance, 7(3), 67–74. https://doi.org/10.18178/ijtef.2016.7.3.501

Thanjunpong, S., Awirothananon, T., & Dechsiri, P. (2019). The Impact of Sustainable Development Report on Firm Performance in Thailand. Journal of Accounting & Finance, 19(3), 2158-3625.

Treepongkaruna, S., & Suttipun, M. (2024). The impact of environmental, social and governance (ESG) reporting on corporate profitability: Evidence from Thailand. Journal of Financial Reporting and Accounting.

Van Brecht, D., Maga, A., Luciani, K., et al. (2018). Exploring the link between environmental, social and governance (ESG) disclosure and market value of the firm: Evidence from Thai listed companies. AJMI-ASEAN Journal of Management and Innovation, 5(2), 95-106.

Vizcarra, H. V. (2020). The reasonable investor and climate-related information: changing expectations for financial disclosures. Environmental Law Reporter News & Analysis, 50, 10106.

Wasiuzzaman, S., Ibrahim, S. A., & Kawi, F. (2022). Environmental, social and governance (ESG) disclosure and firm performance: does national culture matter? Meditari Accountancy Research, 31(5), 1239–1265. https://doi.org/10.1108/medar-06-2021-1356

West, S. G., Wu, W., McNeish, D., & Savord, A. (2023). Model fit in structural equation modeling. Handbook of structural equation modeling. The Guilford Press.

Wicaksono, A. P. (2023). Environmental, Social, Governance and Firm Performance in Developing Countries: Evidence from Southeast Asian. Etikonomi, 22(1), 65-78.

Wu, Y., & Tham, J. (2023). The Impact of Executive Green Incentives and Top Management Team Characteristics on Corporate Value in China: The Mediating Role of Environment, Social and Government Performance. Sustainability, 15(16), 12518. https://doi.org/10.3390/su151612518

Zhang, C., & Jin, S. (2022). What drives sustainable development of enterprises? Focusing on ESG management and green technology innovation. Sustainability, 14(18), 11695.

Zhang, P., Wei, J., & Jiang, J. (2023). ESG Information Disclosure and Corporate Earnings Management—Research on the Moderating Effect Based on Media Attention. Journal of Education, Humanities and Social Sciences, 16, 69-79.

Zumente, I., & Bistrova, J. (2021). ESG Importance for Long-Term Shareholder Value Creation: Literature vs. Practice. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 127. https://doi.org/10.3390/joitmc7020127