Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar

Nik Azhar, Nik Aida Suraya (2023) Relationship between ESG disclosure and firm performance: Malaysian banking sector / Nik Aida Suraya Nik Azhar. Masters thesis, Universiti Teknologi MARA, Kelantan.


Earlier firms were evaluated mostly from their financial performance perspective, but with the increasing attention to environmental, social and governance (ESG) performance of firms became key concerns to stakeholders. Given the demand of stakeholders for increased transparency on environmental, social, and governance (ESG) issues, businesses all over the world have rapidly begun adopting the practice of sustainability reporting. While many studies exist on the association of ESG concerns of an organization with its financial profitability, the literature in the context of banking is still limited. The purpose of this study is to explore the relationship between Environmental, Social, and Governance Disclosure (ESG) and firm performance by focusing on the banking sector. Firm performance is being measured using operational (Return on Assets), financial (Return on Equity), and market performance (Tobin's Q). This study looked at 14 different banks in Malaysia over the course of seven years (2015-2021). All information for the variables is hand-collected and analysed using EViews. The study shows that the relationship between performance and different disclosures is complicated; for instance, it is found that environmental disclosure (ED) has a positive influence on Tobin's Q but a negative impact on ROA and ROE. Additionally, corporate social responsibility disclosure (CSRD) has a negative effect on return on assets (ROA). The findings of this research can be implemented into a viable model that can be used by financial institutions all over the world to concentrate on the impact that ESG disclosure plays on performance.


Item Type: Thesis (Masters)
Email / ID Num.
Nik Azhar, Nik Aida Suraya
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Banking > Bank accounts. Bank deposits. Deposit banking
H Social Sciences > HG Finance > Banking > Banks and the state. State supervision of banks
Divisions: Universiti Teknologi MARA, Kelantan > Kota Bharu Campus > Faculty of Accountancy
Programme: Master of Accountancy
Keywords: financial performance, environmental, social and governance (ESG), corporate social responsibility disclosure (CSRD), environmental disclosure (ED)
Date: January 2023
Edit Item
Edit Item


[thumbnail of 77753.pdf] Text

Download (205kB)

Digital Copy

Digital (fulltext) is available at:

Physical Copy

Physical status and holdings:
Item Status:

ID Number




Statistic details