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Comparative Portfolio Analysis of ESG and Traditional Investments: A Case Study of Thai Companies |
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| รหัสดีโอไอ | |
| Creator | Jira Yammeesri |
| Title | Comparative Portfolio Analysis of ESG and Traditional Investments: A Case Study of Thai Companies |
| Contributor | Seung Hwan Kang |
| Publisher | University of the Thai Chamber of Commerce |
| Publication Year | 2569 |
| Journal Title | Journal of Family Business and Management Studies |
| Journal Vol. | 18 |
| Journal No. | 2 |
| Page no. | p3-16 |
| Keyword | ESG Performance, Sustainable Investing, Financial Performance, Portfolio Analysis |
| URL Website | www.fbmsjournal.com |
| Website title | fbmsjournal |
| ISSN | 2821-9643(online) |
| Abstract | This study investigates the association between Environmental, Social, and Governance performance (ESG) and portfolio level financial outcomes of the Stock Exchange of Thailand listed firms between 2014 and 2024. Two identical, equally weighted portfolios were formed and compared to each other. The ESG portfolio consists of fourteen firms listed in Dow Jones Sustainability Index for 2024 and represents firms with consistently excellent ESG performance. Benchmark portfolio includes fourteen companies selected on financial strength without any ESG based screening. The financial performance was indicated by return on equity, return on investment, Sharpe ratio, volatility of the portfolio, and risk adjusted returns. Portfolios were maintained on buy and hold strategy for the entire duration. Statistical analysis involves Pearson correlation tests with p values to examine the strength and significance of relationships between financial metrics and ESG scores, and two sample tests to examine differences in returns and risk measures at the portfolio level. Results show that the ESG portfolio earned higher average risk adjusted returns and lower risk over the ten-year period, with correlation analysis detecting evidence for a positive relationship between financial stability and ESG performance. Results are given in the form of associations and not causal effects. The main limitations are the limited sample size and the low number of standardized firm level ESG scores prior to 2023. The study provides empirical observations and real-world data for institutional investors and regulators who are interested in evaluating ESG integration in emerging markets. |
