Effect of environment, social, and governance (ESG) on the cost of debt: the case of export oriented firms in the Stock Exchange of Thailand

This independent study examined the impact of ESG performance disclosure on the cost of debt. I analyzed data from 87 firms listed on Thailand’s Stock Exchange to show how exports impact sustainability, which could influence firms' cost of debt. The analysis was based on an unbalanced dataset of 87 firms collected from the Thomson Reuters Eikon database, covering the period from 2015 to 2022.The findings revealed that, aligned with some previous research, firms with higher ESG performance tend to face lower debt costs from lenders, but not all pillars are significant. Additionally, when moderated by export, the governance score is particularly valued by debt holders, as firms with more robust governance practices benefit from lower debt costs.This study aimed to provide valuable insights for managers, investors, debt holders, and stakeholders regarding sustainable investments. The results also suggested several policy implications regarding ESG performance and its influence on the cost of borrowing.