FIRM OWNERSHIP AND ESG PRACTICES: A STUDY OF INDEXED VS. NON-INDEXED THAI COMPANIES

Abstract

This study explores the relationship between firm ownership (index membership as a proxy for ownership) and environmental sustainability practices (measured by greenhouse gas emission reduction target-setting) among Thai SET listed companies from 2019 to 2024. This study uses Probit and ordered Logit regression models to test hypothesis. The results indicate that index inclusion driver for firms to adopt of environmental practices, and indexed companies are 16.25% more likely to set emission reduction targets than non-index companies. However, the identity of index companies does not necessarily improve the quality of targets, as industry characteristics are more decisive. All hypothesized moderating effects (institutional ownership, European institutional pressure, and ownership concentration) are insignificant. Among them, European institutional pressure acts as an independent driving factor but fails to show a synergistic effect. The Thai market characteristic dominated by family business to explain why ownership concentration fails to promote environmental practices. This study enriches the literature on sustainability in emerging markets and offers implications for regulators to improve index criteria, firms to avoid symbolic compliance, and investors to assess actual environmental performance.