The effect of environmental, social, and governance (ESG) scores on cost of debt: a case of Thai listed companies in Stock Exchange of Thailand

The objective of this research is to examine the relationship between environmental, social, and governance (ESG) practices and firm cost of debt within the Thai context. This study employs Generalized Linear Model mediation analysis to analyze the data of Thai publicly listed non-financial firms during the years 2015 to 2023 with a total of 485 samples. The research includes ESG disclosure as a potential mediator. The results indicate a counterintuitive positive relationship between ESG practices and cost of debt, deviating from established findings in developed markets. This study contributes to the understanding of ESG-related factors influencing the cost of debt in emerging markets.