Environment Social Governance Investing and Firm Performance in Telecommunication Industry
Abstract
This research explores the use of business sustainability performance in Telecommunication Companies to understand the driving force of financial performance and non-financial Environment Social Governance performance. It explains the use of Shareholder and Stakeholder Models to understand the relationship between financial and non-financial ESG sustainability and firm performance. It describes that the ultimate goal of maximization of a firm’s value is driven by improved and non-financial ESG sustainability performance. The inter-working among these variables will lead to reduced cost of capital, hence acting as protection against future economic shocks caused by a pandemic or financial crisis. The sustainability models provided by shareholder wealth maximization and stakeholder welfare maximization can create both synergies and conflicts simultaneously; hence, finding the optimal balancing act in determining the investment appetite into the firm, known as ESG investing, is key. The findings will provide firms with the right tools to attract a good flow of investment at cheaper rates into the company. In addition, companies with positive business sustainability performance will increase ESG investing appetite as they see their investment protected from future economic shocks caused by the future crisis.
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About this article
Publication Date
06 May 2024
Article Doi
eBook ISBN
978-1-80296-132-4
Publisher
European Publisher
Volume
133
Print ISBN (optional)
-
Edition Number
1st Edition
Pages
1-1110
Subjects
Marketing, retaining, entrepreneurship, management, digital marketing, social entrepreneurship
Cite this article as:
Karim, M. N. A., Yasin, I. M., & Latiff, A. R. A. (2024). Environment Social Governance Investing and Firm Performance in Telecommunication Industry. In A. K. Othman, M. K. B. A. Rahman, S. Noranee, N. A. R. Demong, & A. Mat (Eds.), Industry-Academia Linkages for Business Sustainability, vol 133. European Proceedings of Social and Behavioural Sciences (pp. 1-10). European Publisher. https://doi.org/10.15405/epsbs.2024.05.1