Does Indirect Government Ownership Matter? Political Linkages and ESG Performance among Malaysian Public Firms

This study examines the relationship between political linkages and ESG performance among Malaysian publicly listed companies. Political linkage is proxied by the percentage of equity ownership held by the government, either directly or indirectly. ESG performance data will be sourced from the Refinitiv Eikon database for the year 2024, excluding financial institutions. Multiple linear regression analysis will be employed to investigate whether firms with political linkages demonstrate higher ESG performance, controlling for firm size, profitability, leverage, and sector. The research is grounded in Legitimacy Theory and Resource Dependency Theory, which suggest that politically connected firms may seek to enhance their ESG performance to maintain legitimacy and secure access to critical resources through favourable relationships with the state. The study is expected to find a positive association between political linkages and ESG performance. The findings aim to advance the understanding of how ownership structures influence sustainability outcomes, providing relevant insights for policymakers, institutional investors, and corporate governance stakeholders in emerging markets.