Issue

Vol. 13 No. 2 (2026): September

Date Log

Submitted
23 May 2026
Accepted
14 August 2026
Published
14 August 2026

Copyright (c) 2026 Fadrul Fadrul, Briyan Cadalora Putra, Priyono Priyono, Ackhriansyah Ahmad Gani (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

From ESG Performance to Firm Value: Examining the Financial Consequences of Strategic Sustainability

https://doi.org/10.24252/minds.v13i2.68366
Fadrul Fadrul
Institut Bisnis & Teknologi Pelita Indonesia, Indonesia
Briyan Cadalora Putra
Universitas Bhayangkara Surabaya, Indonesia
Priyono Priyono
Institut Bisnis & Teknologi Pelita Indonesia, Indonesia
Ackhriansyah Ahmad Gani
Universitas Muslim Indonesia, Indonesia

Corresponding Author(s) : Fadrul Fadrul

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 13 No. 2 (2026): September

Abstract

This study examines the effect of Environmental, Social, and Governance (ESG) performance on financial performance and firm value among energy sector firms listed on the Indonesia Stock Exchange during 2021–2024. Using purposive sampling, the study analyzes 264 firm-year observations from 66 companies. ESG functions as the independent variable, financial performance proxied by Return on Assets (ROA) serves as the mediating variable, and firm value proxied by Price to Book Value (PBV) represents the dependent variable. Data were analyzed using PLS-SEM with SmartPLS. The findings indicate that ESG has a negative and insignificant effect on financial performance but a positive and significant effect on firm value. Financial performance also significantly mediates the relationship between ESG and firm value in a negative direction, suggesting that market valuation responds more strongly to ESG legitimacy than to short-term profitability performance.

Keywords

ESG Performance Financial Performance Firm Value Energy Sector PLS-SEM
Fadrul, F., Putra, B. C., Priyono, P., & Gani, A. A. (2026). From ESG Performance to Firm Value: Examining the Financial Consequences of Strategic Sustainability. Jurnal Minds: Manajemen Ide Dan Inspirasi, 13(2), 539–550. https://doi.org/10.24252/minds.v13i2.68366
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Author Biographies

Fadrul Fadrul, Institut Bisnis & Teknologi Pelita Indonesia

Management Department

Briyan Cadalora Putra, Universitas Bhayangkara Surabaya

Management Department

Priyono Priyono, Institut Bisnis & Teknologi Pelita Indonesia

Management Department

Ackhriansyah Ahmad Gani, Universitas Muslim Indonesia

Management Department

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