Fajar Karunia Putra, Made Aditya Budastra


Background: As global awareness begins to lead to sustainable business practices, the Environmental, Social, and Governance (ESG) framework becomes one of the important things in evaluating firms. Sustainability information such as ESG is considered capable of influencing firm value.

Objective: The goal of the study is to examine the effect exerted by ESG on the value of the firm with financial performance acting as a mediating variable.

Research Method: This study utilizes regression data analysis techniques to test the influence between variables. Secondary data were used in this study using Thomson Reuters and OSIRIS databases. The sample obtained was 35 firms that fit the purposive sampling criteria, with the number of observations for the 2017-2022 period being 210 observations.

Research Results: ESG cannot affect firm value, while ESG can affect financial performance, and financial performance can affect firm value. Results also show the full mediating effect exerted by financial performance on the connection between ESG and firm value.

Research Originality/Novelty: A research construct that uses financial performance mediation in explaining the connection between ESG and firm value.


ESG; Financial Performance; Firm Value

Full Text:



Aboud, A., & Diab, A. (2017). The impact of social , environmental and corporate governance disclosures on firm value Evidence from Egypt.

Adeneye, Y. B., Kammoun, I., & Ab Wahab, S. N. A. (2022). Capital structure and speed of adjustment: the impact of environmental, social and governance (ESG) performance. Sustainability Accounting, Management and Policy Journal.

Adikerta, I. M. A., & Abundanti, N. (2020). Pengaruh Inflasi, Return on Assets, Dan Debt To Equity Ratio Terhadap Harga Saham. E-Jurnal Manajemen Universitas Udayana, 9(3), 968.

Ainy, R. N., & Barokah, Z. (2019). Corporate Governance, Environmental Responsibility and Firm Value: An Empirical Study in Indonesia and Malaysia. Journal of Accounting and Investment, 20(2).

Akhmadi, A., & Januarsi, Y. (2021). Profitability and firm value: Does dividend policy matter for Indonesian sustainable and responsible investment (SRI)-KEHATI listed firms? Economies, 9(4).

Albitar, K., Hussainey, K., Kolade, N., & Gerged, A. M. (2020). ESG disclosure and firm performance before and after IR: The moderating role of governance mechanisms. International Journal of Accounting and Information Management, 28(3), 429–444.

Atan, R., Alam, M. M., Said, J., & Zamri, M. (2018). The impacts of environmental, social, and governance factors on firm performance: Panel study of Malaysian companies. Management of Environmental Quality: An International Journal, 29(2), 182–194.

Aydoğmuş, M., Gülay, G., & Ergun, K. (2022). Impact of ESG performance on firm value and profitability. Borsa Istanbul Review, 22, S119–S127.

Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.$00.75

Broadstock, D. C., Chan, K., Cheng, L. T. W., & Wang, X. (2021). The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters, 38(August 2020), 101716.

Cardillo, G., Bendinelli, E., & Torluccio, G. (2023). COVID-19, ESG investing, and the resilience of more sustainable stocks: Evidence from European firms. Business Strategy and the Environment, 32(1), 602–623.

Chouaibi, S., Chouaibi, J., & Rossi, M. (2022). ESG and corporate financial performance: the mediating role of green innovation: UK common law versus Germany civil law. EuroMed Journal of Business, 17(1), 46–71.

Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67.

Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64.

Hayes, A. F. (2022). Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach (Third Edit). The Guilford Press.

He, F., Du, H., & Yu, B. (2022). Corporate ESG performance and manager misconduct: Evidence from China. International Review of Financial Analysis, 82(May).

Heliani, Nur Hidayah K Fadhilah, & Meutia Riany. (2023). Analisis Pengaruh Profitabilitas, Ukuran Perusahaan Dan Leverage Terhadap Nilai Perusahaan. Jurnal Aktiva : Riset Akuntansi Dan Keuangan, 5(1), 16–31.

Jang, G. Y., Kang, H. G., Lee, J. Y., & Bae, K. (2020). ESG scores and the credit market. Sustainability (Switzerland), 12(8).

Junius, D., Adisurjo, A., Rijanto, Y. A., & Adelina, Y. E. (2020). The Impact of ESG Performance to Firm Performance. Jurnal Aplikasi Akuntansi, 5(1), 21–41.

Kanamura, T. (2021). Risk Mitigation and Return Resilience for High Yield Bond ETFs with ESG Components. Finance Research Letters, 41(November 2020).

Kansil, L. A., Rate, P. Van, & Tulung, J. E. (2021). Analisis Kinerja Keuangan terhadap Harga Saham pada Perusahaan Manufaktur Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Periode 2015-2019. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 9(Juli 2021), 232–241.

Lee, H. J., & Rhee, T. H. (2023). How Does Corporate ESG Management Affect Consumers’ Brand Choice? Sustainability (Switzerland), 15(8).

Litvinenko, V., Bowbriсk, I., Naumov, I., & Zaitseva, Z. (2022). Global guidelines and requirements for professional competencies of natural resource extraction engineers: Implications for ESG principles and sustainable development goals. Journal of Cleaner Production, 338.

Liu, H., & Lyu, C. (2022). Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China. Sustainability (Switzerland), 14(19).

Maji, S. G., & Lohia, P. (2023). Environmental, social and governance (ESG) performance and firm performance in India. Society and Business Review, 18(1), 175–194.

Mallin, C. A. (2019). Corporate Governance by Christine A. Mallin. In Oxford press.

Mudjijah, S., Khalid, Z., & Astuti, D. A. S. (2019). Pengaruh Kinerja Keuangan Dan Struktur Modal Terhadap Nilai . Jurnal Akuntansi Dan Keuangan, 8(1), 41–56.

Murni, S. ., & Sabijono, H. . (2018). Peran Kinerja Keuangan Dalam Menentuan Nilai Perusahaan. JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi)., 5(2), 96–107.

Nguyen, D. T., Hoang, T. G., & Tran, H. G. (2022). Help or Hurt? The Impact of ESG on Firm Performance in S&P 500 Non-Financial Firms. Australasian Accounting, Business and Finance Journal, 16(2), 91–102.

Nielsen, K. P., & Noergaard, R. W. (2011). CSR and mainstream investing: a new match?–an analysis of the existing ESG integration methods in theory and practice and the way forward. Journal of Sustainable Finance and Investment, 1(3–4), 209–221.

Nisa, A. Z., Titisari, K. H., & Masitoh, E. (2023). Pengaruh Pengungkapan Environmental, Social, dan Governance terhadap Kinerja Perusahan. Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 5(5), 2400–2411.

Pesqueux, Y., & Damak-ayadi, S. (2005). Stakeholder theory in perspective. 5(2), 5–21.

Pratiwi, R. D. (2020). Do Capital Structure, Profitability, and Firm Size Affect Firm Value? Jurnal Penelitan Ekonomi Dan Bisnis, 5(2), 194–202.

Pulino, S. C., Ciaburri, M., Magnanelli, B. S., & Nasta, L. (2022). Does ESG Disclosure Influence Firm Performance? Sustainability (Switzerland), 14(13), 1–18.

Puriwat, W., & Tripopsakul, S. (2023). Sustainability Matters: Unravelling the Power of ESG in Fostering Brand Love and Loyalty across Generations and Product Involvements. Sustainability (Switzerland), 15(15).

Rastogi, S., Singh, K., & Kanoujiya, J. (2023). Firm’s value and ESG: the moderating role of ownership concentration and corporate disclosures. Asian Review of Accounting.

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2010). Fundamentals of Corporate Finance (Ninth Edit). McGraw-Hill/Irwin.

Rutin, Triyonowati, & Djawoto. (2019). Pengaruh Kinerja Keuangan Perusahaan

Terhadap Nilai Perusahaan Dengan Kebijakan Deviden Sebagai Variabel Variabel Pemoderasi. Jurnal Riset Akuntansi Dan Perpajakan, 6(2), 126–142.

Sarpong, F. A., Sappor, P., Nyantakyi, G., Ahakwa, I., Esther Agyeiwaa, O., & Blandful Cobbinah, B. (2023). From traditional roots to digital bytes: Can digitalizing ESG improves Ghanaian rural banks’ brand equity through stakeholder engagement, and customer loyalty? Cogent Business and Management, 10(2).

Spence, M. (1973). Job Market Signaling Author ( s ): Michael Spence Published by : Oxford University Press Stable URL : The Quarterly Journal of Economics, 87(3), 355–374.

Supriyadi, A., & Setyorini, C. T. (2020). Pengaruh Pengungkapan Manajemen Risiko Terhadap Nilai Perusahaan Melalui Kinerja Keuangan Di Industri Perbankan Indonesia. Owner (Riset Dan Jurnal Akuntansi), 4(2), 467.

Suryasari, N. K. N., & Artini, L. G. S. (2020). Pengaruh Tat, Cr, Roa, Dan Per Terhadap Harga Saham Properti Dan Real Estate Di Bei. E-Jurnal Manajemen Universitas Udayana, 9(4), 1485.

Thomson Reuters Eikon. (2017). Thomson Reuters ESG Scores Date of issue : March 2017. Thomson Reuters EIKON, March.

Umar, A. U. A. Al, Arinta, Y. N., Anwar, S., Savitri, A. S. N., & Faisal, M. A. (2020). Pengaruh Profitabilitas Terhadap Harga Saham Pada Jakarta Islamic Index: Struktur Modal Sebagai Variabel Intervening. Inventory: Jurnal Akuntansi, 4(1), 22.

Utami, E. M., Yuliani, R., & Fatihat, G. G. (2023). Analisis Dampak Keputusan Keuangan Terhadap Nilai Perusahaan Di Sektor Properti. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 7(3), 181–195.

Utari, A. A., Sukmana, W., & Pratiwi, L. (2021). Pengaruh Intellectual Capital Terhadap Nilai Perusahaan Pada Perusahaan Sub Sektor Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia (Bei) Periode Tahun 2016-2020. Jurnal Ekonomi Perjuangan, 3(1), 39–48.

Wang, H., Lu, W., Ye, M., Chau, K. W., & Zhang, X. (2016). The curvilinear relationship between corporate social performance and corporate financial performance: Evidence from the international construction industry. Journal of Cleaner Production, 137, 1313–1322.

Wong, W. C., Batten, J. A., Ahmad, A. H., Mohamed-Arshad, S. B., Nordin, S., & Adzis, A. A. (2021). Does ESG certification add firm value? Finance Research Letters, 39(May 2020), 101593.

Xu, Q., Lu, Y., Lin, H., & Li, B. (2021). Does corporate environmental responsibility (CER) affect corporate financial performance? Evidence from the global public construction firms. Journal of Cleaner Production, 315(2021), 1–11.

Yunica, A. S., & Rokhim, R. (2023). Unveiling the hidden power : How ESG enhanced Indonesian companies ’ financial flexibility. Jurnal Siasat Bisnis, 27(2), 171–187.



  • There are currently no refbacks.

Creative Commons License

Jurnal Akuntansi Bisnis by The author of this article is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Based on a work at
Permissions beyond the scope of this license may be available at