THE IMPACT OF RESPONSIBLE INVESTMENT ON THE OPERATING PERFORMANCE OF ASIAN LARGE COMPANIES

Abstract

The aim of this paper is to determine the influence of the responsible investment (principle for responsible investment, financial materiality, and policy and regulation)on the operating performanceof large companiesin Asian countries as emerging market (Iraq, Indonesia, Bangladesh, Vietnam, Philippines, Cambodia, Brunei Darussalam). This study utilise secondary data from the content analysis of the Datastream and annual reports of 150 sampled listed on Asian market for the period of 2009-2015 and utilise the OLS and its robustregressions. The resultsclarification that there is a positive and significant relation amongresponsible investment (RI) and its dimensionsfinancial materiality, and policy and regulation with operating performance(OP). Especially, there is a negative and important link amongthe principle for responsible investmentwith OP. This study investigations the influence of the responsible investmenton the OP.To the scholars’ best knowledge, this paper makes aimportant contribution in terms of RI. So that they can recommendlarge companies issuers and investors about the important of RI. Therefore, investors may take RI as indication to take this element into thought when making large companiesinvestment decisions.The regulatory bodies should also remain knowing of the attributes of OP attainment due to the on-going differences on the RI policiesin additionally to the “stock exchange’s listing requirements