Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets
Extreme weather events are the primary driver of environmental, social, and governance (ESG) responsible investment or sustainable stocks, which are gaining popularity worldwide, including in Thailand. Nevertheless, the function of sustainable stocks remains an academic dispute and without satisfact...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-05-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/13/2/71 |
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| author | Pitipat Nittayakamolphun Wiwatwong Bunnun Nathaporn Phong-a-ran Raweepan Uttarin Panjamapon Pholkerd |
| author_facet | Pitipat Nittayakamolphun Wiwatwong Bunnun Nathaporn Phong-a-ran Raweepan Uttarin Panjamapon Pholkerd |
| author_sort | Pitipat Nittayakamolphun |
| collection | DOAJ |
| description | Extreme weather events are the primary driver of environmental, social, and governance (ESG) responsible investment or sustainable stocks, which are gaining popularity worldwide, including in Thailand. Nevertheless, the function of sustainable stocks remains an academic dispute and without satisfactory conclusion for decision-making of Thai investors. Thus, we adopt a dynamic conditional correlation generalized autoregressive conditional heteroskedasticity (DCC-GARCH) model to examine the influence of Thailand sustainability investment on Thailand’s stock market and financial assets. The result indicates that Thailand sustainability investment lacks hedging functions and is classified as a weak safe-haven for consumer product stocks, bitcoin, and Thai baht. Consequently, Thailand sustainability investment provides a better alternative asset for risk diversification, although volatility is low compared to other financial assets and decreases during crises. Investors are advised to diversify their investment risks by adding Thailand sustainability investment to their portfolios during a bearish market. |
| format | Article |
| id | doaj-art-b808c48eb25f4cedae704ade52a703a4 |
| institution | OA Journals |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-b808c48eb25f4cedae704ade52a703a42025-08-20T02:21:10ZengMDPI AGInternational Journal of Financial Studies2227-70722025-05-011327110.3390/ijfs13020071Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial AssetsPitipat Nittayakamolphun0Wiwatwong Bunnun1Nathaporn Phong-a-ran2Raweepan Uttarin3Panjamapon Pholkerd4Faculty of Management Sciences, Buriram Rajabhat University, Buriram 31000, ThailandFaculty of Business Administration and Information Technology, Rajamangala University of Technology Isan, Khon Kaen 40000, ThailandFaculty of Business Administration and Information Technology, Rajamangala University of Technology Isan, Khon Kaen 40000, ThailandFaculty of Management Sciences, Buriram Rajabhat University, Buriram 31000, ThailandFaculty of Management Sciences, Buriram Rajabhat University, Buriram 31000, ThailandExtreme weather events are the primary driver of environmental, social, and governance (ESG) responsible investment or sustainable stocks, which are gaining popularity worldwide, including in Thailand. Nevertheless, the function of sustainable stocks remains an academic dispute and without satisfactory conclusion for decision-making of Thai investors. Thus, we adopt a dynamic conditional correlation generalized autoregressive conditional heteroskedasticity (DCC-GARCH) model to examine the influence of Thailand sustainability investment on Thailand’s stock market and financial assets. The result indicates that Thailand sustainability investment lacks hedging functions and is classified as a weak safe-haven for consumer product stocks, bitcoin, and Thai baht. Consequently, Thailand sustainability investment provides a better alternative asset for risk diversification, although volatility is low compared to other financial assets and decreases during crises. Investors are advised to diversify their investment risks by adding Thailand sustainability investment to their portfolios during a bearish market.https://www.mdpi.com/2227-7072/13/2/71safe-havenDCC-GARCHsustainable stocksfinancial assetshedging |
| spellingShingle | Pitipat Nittayakamolphun Wiwatwong Bunnun Nathaporn Phong-a-ran Raweepan Uttarin Panjamapon Pholkerd Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets International Journal of Financial Studies safe-haven DCC-GARCH sustainable stocks financial assets hedging |
| title | Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets |
| title_full | Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets |
| title_fullStr | Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets |
| title_full_unstemmed | Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets |
| title_short | Thailand Sustainability Investment Performance on Thailand’s Stock Market and Financial Assets |
| title_sort | thailand sustainability investment performance on thailand s stock market and financial assets |
| topic | safe-haven DCC-GARCH sustainable stocks financial assets hedging |
| url | https://www.mdpi.com/2227-7072/13/2/71 |
| work_keys_str_mv | AT pitipatnittayakamolphun thailandsustainabilityinvestmentperformanceonthailandsstockmarketandfinancialassets AT wiwatwongbunnun thailandsustainabilityinvestmentperformanceonthailandsstockmarketandfinancialassets AT nathapornphongaran thailandsustainabilityinvestmentperformanceonthailandsstockmarketandfinancialassets AT raweepanuttarin thailandsustainabilityinvestmentperformanceonthailandsstockmarketandfinancialassets AT panjamaponpholkerd thailandsustainabilityinvestmentperformanceonthailandsstockmarketandfinancialassets |