ESG and company market value: The mediating effect of financial performance

This study explores the correlation between ESG performance and company market value, with a particular emphasis on the mediating role of financial performance within listed firms in Vietnam. The main goal of this study is to analyze a representative sample of 199 publicly listed companies in Vietnam from 2019 to 2023. The findings reveal that ESG positively impacts market value by enhancing financial performance, particularly profitability. By investigating the relationship between ESG performance and company market value, alongside the mediating role of financial performance, this study contributes meaningfully to existing knowledge. Focusing on financial performance as a mediator, the research offers deeper insights into how ESG factors influence market value. The findings hold practical relevance for various stakeholders, including investors, policymakers, and corporate managers. By emphasizing the role of ESG in driving both financial performance and market value, the study highlights the necessity for companies to embed ESG considerations into their strategic decision-making to improve long-term sustainability, reduce risks, and attract socially responsible investors. Additionally, the study provides actionable recommendations for stakeholders such as investors and policymakers, reinforcing the importance of integrating ESG principles into business and regulatory frameworks.