THE RELATIONSHIP BETWEEN ACCOUNTING NET PROFIT, NET CASH FLOW FROM FINANCIAL ACTIVITIES, AND SUSTAINABILITY PERFORMANCE WITHIN THE SUSTAINABLE STOCK GROUP OF A COMPANY LISTED ON THE STOCK EXCHANGE OF THAILAND
Keywords:
Accounting net profit, Sustainability performance, ESG rating, Cash flow, The stock exchange of Thailand (SET)Abstract
Introduction/Main Objectives: This research aims to examine the relationship between accounting net profit, cash flow from financial activities, and sustainability performance within the sustainable stock group of companies listed on the Stock Exchange of Thailand (SET). Background Problems: As environmental, social, and corporate governance (ESG) issues become increasingly important in the evaluation of investments and business practices, a company requiring strong ESG support to impact its long-term sustainability may consider allocating its net profits to promote and support such initiatives. This could help project a positive image for the company, ensuring its long-term viability. Novelty: The net cash flow from financing activities is used as a moderating variable to analyze its influence on the relationship between the independent and dependent variables. Research Methods: This research used quantitative data to examine the relationship between accounting net profit, net cash flow from financial activities, and sustainability performance in the sustainable stock group of companies listed on the SET. The following variables were selectively determined: accounting net profit as the independent variable, cash flow from financial activities as the moderating variable, and sustainability performance, measured by the rating of ESG disclosures of the sustainable stock group of companies, as the dependent variable. Findings/Results: The results show a significant effect of accounting net profit on sustainability performance. Additionally, cash flow from financial activities has a significant moderating effect on the relationship between accounting net profit and sustainability performance. Conclusion: This research found that if a company has a higher accounting net profit, it is likely to achieve better sustainability performance. Furthermore, cash flows from investment and financing activities significantly influence this relationship, enhancing sustainability performance.
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