The Influence of Environmental Social Governance and ESG Disclosure on Company Value with Financial Performance as an Intervening Variable

Yuriestyo Tjatur Widodo, . Wahidahwati and Lilis Ardini
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Yuriestyo Tjatur Widodo: Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Indonesia.
. Wahidahwati: Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Indonesia.
Lilis Ardini: Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Indonesia.

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Abstract: This study examines the effects of environmental, social, governance, and aggregate environmental, social, and governance (ESG) disclosure on financial performance and firm value, and evaluates the intervening role of financial performance among mining companies listed on the Indonesia Stock Exchange during 2018–2022. A quantitative causative design was applied to a population of 49 mining companies. Purposive sampling yielded 17 companies observed over five years, producing 85 firm-year observations. Financial performance was measured using Return on Assets (ROA), while firm value was represented by Price to Book Value (PBV). Multiple linear regression and path analysis were conducted using IBM SPSS. The results indicate that environmental, social, governance, and aggregate ESG disclosure significantly affect financial performance. The same variables also show significant direct effects on firm value, while financial performance significantly affects firm value. The mediation analysis indicates that financial performance mediates the relationships of environmental and governance disclosure with firm value. In contrast, financial performance does not mediate the relationships of social disclosure or aggregate ESG disclosure with firm value. These findings suggest that the pathways linking ESG-related disclosure to firm value differ across ESG dimensions. For the mining companies examined, stronger ESG transparency is associated with financial performance and market valuation, although the intervening role of financial performance is not uniform across environmental, social, and governance dimensions.

Date: 2026-09-30
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Published in Asian Journal of Economics, Business and Accounting, 2026, 26 (10), pp.67-84

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