FinTech Adoption and the ESG–Firm Value Nexus: Empirical Evidence from GCC-Listed Firms

The growing emphasis on sustainable finance and digital transformation has fundamentally reshaped how firm value is created and assessed in emerging capital markets. In regions such as the Gulf Cooperation Council (GCC), where ownership concentration, information opacity, and evolving regulatory frameworks remain structural challenges, understanding the mechanisms through which sustainability initiatives translate into market value is of critical importance. This study addresses this need by examining whether Environmental, Social, and Governance (ESG) performance enhances firm value and whether financial technology (FinTech) adoption strengthens this relationship. Grounded in Stakeholder Theory and Information Asymmetry Theory, the study highlights FinTech as a practical mechanism that improves transparency, credibility, and investor interpretation of ESG activities. Using a balanced panel of 242 non-financial GCC-listed firms from 2017 to 2024, firm value is measured by Tobin’s Q, ESG performance by Bloomberg ESG scores, and FinTech adoption by a firm-level textual analysis index. Employing the Least Squares Dummy Variable Corrected (LSDVC) estimator to address dynamic panel bias, the results show that ESG performance positively affects firm value and that this effect is significantly amplified by FinTech adoption. The findings demonstrate that sustainability initiatives generate valuation benefits only when supported by effective digital financial infrastructure. The study offers practical insights for managers, investors, and policymakers seeking to enhance firm valuation, attract long-term capital, and advance sustainable economic transformation in the GCC.