Date of Publication

7-2022

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting | Behavioral Economics | Business and Corporate Communications | Business Law, Public Responsibility, and Ethics

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Advisor

Arnel Onesimo O. Uy

Defense Panel Chair

Arnel Onesimo O. Uy

Defense Panel Member

Ma. Sinamar Venus V. Bautista
Tereynz Paul D. Mendoza
Arnel Onesimo O. Uy

Abstract/Summary

Sustainability is no longer a market niche — it is becoming the new normal. This has led to the rise of Environmental, Social, and Governance (ESG) reporting spurred by the demand for the transparency and standardization of sustainable business practices. Despite its increasing importance, there are limited studies on how investors react to companies publishing ESG reports as well as concerns on its integrity, specifically in emerging markets like the Philippines which have yet to mandate ESG reporting. As such, this study aims to analyze how the voluntary issuance of ESG reports affect stock performance and trading among publicly-listed companies (PLCs) in the Philippines. The population in this study included all PLCs in the Philippine Stock Exchange (PSE) that have issued standalone ESG reports from 2014 to 2019, identifying a total of 74 ESG issuances. An event study methodology was conducted to investigate the Cumulative Abnormal Returns (CAR) and Cumulative Abnormal Change in Trading Volume (CAV) around these ESG issuances. Hypotheses testing was conducted through the use of the Wilcoxon Signed Rank test. The individual and combined analysis of the variables revealed that PSE investors do not react to the issuance of ESG reports. The implications of such are significant to PSE investors, PLCs, regulatory bodies, Certified Public Accountants (CPAs), and the academe.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Sustainable development reporting; Stock exchanges—Environmental aspects

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Embargo Period

6-30-2022

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