The Impact of Sustainability Management Disclosures on the Profitability of Agro and Food Industry Companies Listed on the Stock Exchange of Thailand

Abstract

The purpose of this research was to study impacts of sustainability management disclosures on profitability of agricultural industry and food industry companies listed on the Stock Exchange of Thailand. The scope of the study was limited to the year 2021. The sample size consisted of 67 agro and food industry companies. Data were collected from the annual report of the SETSMART database of the Stock Exchange of Thailand, annual information disclosure form (Form 56-1 One Report), annual report, company sustainability report, sustainability management disclosure guide and sustainability indicators (ESG Metrics) for agricultural industry and food industry companies by the Stock Exchange of Thailand. The statistics used for analyzing were descriptive statistical analysis, correlation coefficient analysis and multiple regression analysis. At the statistical significance level of 0.05, the first research finding showed that the disclosure of environmental sustainability management information and the type of audit firm had a positive impact on profitability in terms of return on equity (ROE). Secondly, the disclosure of environmental sustainability management information and the type of audit firm had a positive impact on profitability in terms of return on total assets (ROA). Thirdly, the sustainability management disclosures were not related to profitability in terms of gross profit margin (GPM). Lastly, the disclosure of environmental sustainability management information type of audit firm and the proportion of shareholding of major shareholders had a positive effect on profitability in terms of net profit margin (NPM).