Sustainable Development Goals (SDGs) And Share Price : A Study of Malaysian Listed Companies

Mohd Waliuddin, Mohd Razali and Florene Aya, Moses and Dg Junaidah, Awang Jambol and Rozaiha, Ab Majid and Damien Iung Yau, Lee and Jin Quan, Chang (2025) Sustainable Development Goals (SDGs) And Share Price : A Study of Malaysian Listed Companies. In: ICE 2025 - The 5th International Conference on Economics 2025, 23-24 October 2025, Promenade Hotel Kota Kinabalu.

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Abstract

SDGs have been integrated into corporate strategies and this trend is accompanied by action from the side of investors who increasingly look at sustainability as well as financial performance. The lack of clear disclosure rules in Malaysia makes it hard for investors to assess sustainability performance listed companies due to limited information. The main objective of this study is to examine the correlation between SDGs and Malaysian companies' share price performance. Stakeholder theory suggests sustainability info boosts share prices by gaining trust from stakeholders while Signalling theory suggests it shows a company’s long-term value, attracting investors. Through the analysis of panel data comprising at least 30 Bursa Malaysia-listed firms for the 2021–2023 period, secondary data from annual reports and sustainability disclosures were used. Multiple linear regression analysis was employed to evaluate the influence of SDGs and control variables, including leverage, firm size, firm age, liquidity, and profitability, on share prices. The findings reveal that while SDG disclosures are positively associated with share price, the relationship is statistically insignificant, suggesting limited influence on market valuation. In contrast, profitability and firm age show significant positive effects on share price, while liquidity has a significant negative impact. These results indicate that traditional financial indicators continue to play a more critical role in influencing share prices than sustainability disclosures.

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