Influence of environmental, social, and governance scores on the economic performance of publicly listed companies in Malaysia
DOI:
https://doi.org/10.15282/jgi.9.1.2026.13385Keywords:
Agency Theory, Economic Performance, Environmental, Social, and Governance (ESG), FTSE Russell ESG Ratings, Public-Listed Companies, Stakeholder Theory, SustainabilityAbstract
As Environmental, Social, and Governance (ESG) criteria become central to global investment strategy, their financial implications in emerging markets such as Malaysia remain an important question. This conceptual study develops a framework linking overall ESG performance and its environmental, social, and governance dimensions to economic performance, represented by Return on Assets (ROA) and Tobin's Q, among companies listed on Bursa Malaysia. Grounded in stakeholder and agency theories, the framework explains how ESG commitments may translate into corporate value through stakeholder relationships, governance quality, operational efficiency, and market confidence. The proposed framework offers a structured basis for future empirical testing and provides implications for investors, corporate leaders, and regulators seeking to align sustainability practices with long-term economic performance.
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