IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v20y2025i3p366-386.html

Esg Performance, Firm Value, And The Mediating Role Of Financial Performance: Evidence From Top Esg Companies In The Largest Asean Economies

Author

Listed:
  • Andi WIJAYANTO

    (Universitas Diponegoro, Semarang, Indonesia)

  • Fajar SUPANTO

    (Universitas Merdeka Malang, Malang, Indonesia)

Abstract

Environmental, Social, and Governance (ESG) considerations are essential for businesses as they enhance stakeholder engagement, improve the company's brand reputation, and lead to better financial performance by integrating sustainability and ethical principles into business strategies. This study aims to analyze the influence of ESG performance on financial performance and firm value and to assess the mediating role of financial performance in the relationship between ESG performance and firm value in Indonesia, Thailand, and Singapore. This study examined 247 top ESG companies in ASEAN's largest economies. Data were collected from LSEG Data & Analytics, ESG Indonesia Capital Market, Singapore Exchange, Stock Exchange of Thailand, company financial reports, annual reports, and IDX. Data were analyzed using PLS-SEM. The study found that ESG performance positively affects firm performance in Indonesia and Singapore, but not in Thailand. ESG performance positively affects firm value in Indonesian companies but not in Thai and Singaporean companies. Firm performance positively affects firm value in Thailand and Singapore, but not in Indonesia. The role of firm performance in mediating the effect of ESG performance on firm value in Indonesia, Thailand, and Singapore was not significant.

Suggested Citation

  • Andi WIJAYANTO & Fajar SUPANTO, 2025. "Esg Performance, Firm Value, And The Mediating Role Of Financial Performance: Evidence From Top Esg Companies In The Largest Asean Economies," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 20(3), pages 366-386, December.
    • Handle: RePEc:blg:journl:v:20:y:2025:i:3:p:366-386
    as

    Download full text from publisher

    File URL: http://magazines.ulbsibiu.ro/eccsf/RePEc/blg/journl/20318wijayanto.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xiaoling Yu & Kaitian Xiao, 2022. "Does ESG Performance Affect Firm Value? Evidence from a New ESG-Scoring Approach for Chinese Enterprises," Sustainability, MDPI, vol. 14(24), pages 1-40, December.
    2. Wuzhao Xue & Hua Li & Rizwan Ali & Ramiz Ur Rehman, 2020. "Knowledge Mapping of Corporate Financial Performance Research: A Visual Analysis Using Cite Space and Ucinet," Sustainability, MDPI, vol. 12(9), pages 1-21, April.
    3. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2022. "Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5052-5079, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gawęda, Adrian, 2025. "Does environmental, social, and governance performance elevate firm value? International evidence," Finance Research Letters, Elsevier, vol. 73(C).
    2. Sakhr Bani-Khaled & Graça Azevedo & Jonas Oliveira, 2025. "Environmental, social, and governance (ESG) factors and firm value: A systematic literature review of theories and empirical evidence," AMS Review, Springer;Academy of Marketing Science, vol. 15(1), pages 228-260, June.
    3. Ferah Yildiz & Faruk Dayi & Mustafa Yucel & Ali Cilesiz, 2024. "The Impact of ESG Criteria on Firm Value: A Strategic Analysis of the Airline Industry," Sustainability, MDPI, vol. 16(19), pages 1-23, September.
    4. Dany Nurahman & Hersugondo Hersugondo, 2026. "Does ESG Disclosure Matter for Financial Performance? The Role of Firm Age," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 106-127.
    5. Marta Szczepańczyk & Paweł Nowodziński & Adam Sikorski, 2023. "ESG Strategy and Financial Aspects Using the Example of an Oil and Gas Midstream Company: The UNIMOT Group," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    6. Hong, Seock-Jin & Zhang, Anming & Caliskan, Ferhat & Idug, Yavuz, 2025. "Impact of environmental, social, and governance (ESG) on productivity of major air cargo integrators," Transport Policy, Elsevier, vol. 167(C), pages 295-306.
    7. Wu, Shilei & Zhou, Fu-You & Si, Deng-Kui & Hao, Jiawei, 2025. "Does ESG rating policy reduce corporate risk-taking? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    8. Po‐Sheng Yang & Jin‐Li Hu, 2026. "Intersections Between Digital Innovation and Corporate Social Responsibility: Evidence From Listed Electronics Companies in Taiwan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(2), pages 2705-2736, March.
    9. Defang Ma & Liangwei Li & Yuxi Song & Mengkai Wang & Qiaowen Han, 2023. "Corporate Sustainability: The Impact of Environmental, Social, and Governance Performance on Corporate Development and Innovation," Sustainability, MDPI, vol. 15(19), pages 1-16, September.
    10. Yujuan Wu & Jacquline Tham, 2023. "The Impact of Executive Green Incentives and Top Management Team Characteristics on Corporate Value in China: The Mediating Role of Environment, Social and Government Performance," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    11. Zhang, Yanan & Zhang, Xiaoyu, 2024. "Top management team functional diversity and ESG performance," Finance Research Letters, Elsevier, vol. 63(C).
    12. Quintiliani, Andrea, 2025. "Small and medium-sized enterprises and sustainable transition: Role of FinTech in a country's banking ecosystem," Research in International Business and Finance, Elsevier, vol. 73(PA).
    13. Cai, Cen & Li, Yijia & Tu, Yongqian, 2024. "Big data capabilities, ESG performance and corporate value," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    14. Francesco Sica & Francesco Tajani & Mª Paz Sáez-Pérez & José Marín-Nicolás, 2023. "Taxonomy and Indicators for ESG Investments," Sustainability, MDPI, vol. 15(22), pages 1-15, November.
    15. Li, Zerong & Li, Lan & Hui, Mo, 2024. "Fostering green economic growth through sustainable management of natural resources," Resources Policy, Elsevier, vol. 91(C).
    16. Manzhi Liu & Jia Lu & Chen Zhao & Jie Luo & Qiyao Liu & Hui Wang & Shuting Fang & Yaxin Yang, 2025. "Antecedents and consequences of environmental, social, and governance: A bibliometric analysis based on the Web of Science database," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 984-1001, January.
    17. Jiaqi Xie & Guangqi Zhang & Yuling Li & Xiyu Yan & Lipeng Zang & Qingfu Liu & Danmei Chen & Mingzhen Sui & Yuejun He, 2023. "A Bibliometric Analysis of Forest Gap Research during 1980–2021," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    18. Rachana Manoj Lunawat & Mahmoud Elmarzouky & Doaa Shohaieb, 2025. "Integrating Environmental, Social, and Governance (ESG) Factors into the Investment Returns of American Companies," Sustainability, MDPI, vol. 17(19), pages 1-20, September.
    19. Carlos A. Piccioni & Saulo B. Bastos & Daniel O. Cajueiro, 2024. "Stock Price Reaction to Environmental, Social, and Governance News: Evidence from Brazil and Financial Materiality," Sustainability, MDPI, vol. 16(7), pages 1-25, March.
    20. Chen, Zhengqiang & Ying, Hua & Chen, Qiaoyan, 2024. "Major sporting events, corporate social responsibility, and the value of sports-listed companies," Finance Research Letters, Elsevier, vol. 69(PA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:20:y:2025:i:3:p:366-386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mihaela Herciu (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.