ESG and cybersecurity disclosure: navigating corporate strategy through value relevance analysis

Purpose This study aims to explore the value relevance of sub-aggregate environmental, social and governance (ESG) factors, ESG controversies and cybersecurity disclosure. This paper also incorporates the Boston Consulting Group (BCG) matrix to better understand market responses and inform dynamic corporate strategy. Design/methodology/approach The sample consists of 936 firm-year observations from listed companies in Southeast Asia between 2010 and 2022. This study adopts the Ohlson Valuation Model and uses Dynamic Ordinary Least Squares for panel data analysis. ESG scores are obtained from Eikon, whereas cybersecurity disclosure is measured using hand-counting techniques applied to annual reports. Findings The results of this study indicate that the social and governance pillars have value relevance, while each BCG category displays distinct patterns of value relevance for ESG factors and cybersecurity disclosure, underscoring the need for quadrant-specific strategies. Practical implications The findings of this study offer implications for investors, firms and regulators. Investors consider integrating ESG and cybersecurity information into investment decision-making to be strategically important. Firms may facilitate access to additional resources by engaging in ESG activities and disclosing effective cybersecurity information. Regulators deem strengthening ESG-related policies and intensifying cybersecurity disclosure frameworks to be imperative. Originality/value This study extends prior research by investigating the value relevance of ESG factors and cybersecurity disclosure in emerging economies, juxtaposed to most studies that have focused on developed countries. It also offers strategic corporate insights through the application of the BCG matrix.