ESG Performance, Firm Value, and the Mediating Role of Financial Performance: Evidence From top ESG Companies in the Largest Asean Economies

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.