Volume 21 No. 2, August 2022
ARTICLE INFO
Article History:
Received: 29 January 2022
Accepted: 13 May 2022
Available online: 01 August 2022
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 21 NO 2, AUGUST 2022
https://doi.org/10.24191/MAR.V21i02-06
https://doi.org/10.24191/MAR.V21i02-06
Determinants of Social Performance Efficiency of ESG and Non-ESG Firms: Evidence from Southeast Asian Countries
Muhammad Hafiz Ali1♣, Norhuda Abdul Rahim2, Mohamed Hisham Yahya2 and Fakarudin Kamarudin2
1Faculty of Business and Management, Universiti Teknologi MARA, Malaysia.
2School of Business and Economics, Universiti Putra Malaysia, Malaysia.
1Faculty of Business and Management, Universiti Teknologi MARA, Malaysia.
2School of Business and Economics, Universiti Putra Malaysia, Malaysia.
ABSTRACT
The skewed research attention of past literature relatively failed to emphasize on the true objective of firms’ social responsibility; which is upholding stakeholders’ wellbeing. Hence, this study investigated the efficiency of firms in giving back to the masses. Primarily, this study examined firms’ social performance (SP) efficiency by using Data Envelopment Analysis (DEA). Next, by using Panel Regression Analysis; this study investigated the determinants of SP efficiency (internally and externally), based on Institutional Theory. The study focused on both ESG and non-ESG firms in Malaysia and Singapore from 2010 to 2019. First, novelties on SP efficiency are that both countries’ ESG firms are far more efficient in giving back to the masses, compared to non-ESG firms. Additionally, firms’ SP efficiency is significantly influenced by firm’s pure technical inefficiency in directing their financial returns toward ESG contribution. Second, for determinants of SP efficiency; the study yielded findings that are unique to each country. Both firm characteristics (internal) and country characteristics (external) had a significant influence of Malaysia’s ESG firms. While, only country characteristics were significant influence of Singapore’s ESG firms. Moreover, only firm characteristics were found to be significant predictors of SP efficiency for both countries’ non-ESG firms.
Keywords: ESG; Social performance efficiency; Data envelopment analysis; Institutional theory; Southeast Asia
Keywords: ESG; Social performance efficiency; Data envelopment analysis; Institutional theory; Southeast Asia
♣Corresponding Author: Muhammad Hafiz Ali, Faculty of Business Management, Universiti Teknologi Mara N.Sembilan, Rembau Campus, Jalan Kampung Pilin, 71300 Rembau, N.Sembilan, Malaysia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +6017 349 0944