Exploring the link between Environmental, Social and Governance (ESG) disclosure and market value of the firm: evidence from Thai listed companies

  • David Van Brecht Stamford International University
  • Anastasia Maga Stamford International University
  • Kristian Luciani Stamford International University
  • Danuch Sahakijpicharn Stamford International University
  • Anna Semmerling Stamford International University
Keywords: ESG, market value, value-relevance of non-financial information, ESG disclosure


This paper explores the way market values the disclosure of non-financial information, namely the environmental, social and governance (ESG) activities of 719 Thai publicly traded corporations. We used the data from the Bloomberg ESG disclosure score as a reference for ESG activities in the valuation model provided by Ohlson (1995) to find the link between non-financial information and market value. Our results show the value relevance of both ESG disclosure used as a dummy variable in the model and ESG score as a continuous variable for the financial market in Thailand. This research contributes to the vast literature on value relevance of non-financial information and the relations between firm value and sustainability performance by showing that the Thai market also responds favorably to ESG disclosure. In more general terms the research supports the efficient market hypothesis (suggested by Fama - 1998).