Discriminant Analysis of ESG Disclosure Influences on the Market Capitalization Segmentation of Thai Listed Firms
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Abstract
This study aims to analyze the classification of firms based on market capitalization (Large Cap, Mid Cap, and Small Cap) and examine the impact of environmental, social, and governance (ESG) disclosure on such classification. The data were collected from 139 companies listed on the Stock Exchange of Thailand that disclosed ESG information in the Bloomberg database between 2021 and 2023, resulting in 250 firm-year observations. Discriminant analysis was employed to examine the relationships between the variables. The findings reveal that overall ESG disclosure has a positive influence on the classification of firms based on market capitalization. When disaggregated by ESG dimensions, only social and governance disclosures show a significant positive effect, whereas environmental disclosure shows no significant impact. These findings provide practical implications for investors, regulators, and corporate managers in utilizing ESG information to assess firm size and potential in the capital market. The results also highlight the importance of promoting high-quality ESG disclosure as a means of enhancing competitive advantage.
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