Short-Term Performance or Long-Term Sustainability? The Role of ESG Performance and Financial Resilience in ASEAN Manufacturing Firms

DOI

10.2991/978-94-6239-754-5_6How to use a DOI?

Keywords

Environmental; Social; and Governance (ESG); Financial Resilience; Firm Value; Manufacturing Firms; ASEAN

Abstract

This study examines the effect of Environmental, Social, and Governance (ESG) Performance on Firm Value and investigates the mediating role of Financial Resilience among ASEAN manufacturing firms. Using secondary data from 1,004 manufacturing firms listed on major ASEAN stock exchanges in 2024, the study employs multiple regression and bootstrapping mediation analysis using IBM SPSS Statistics 26. The results show that ESG Performance does not have a significant direct effect on Firm Value. However, ESG Performance positively influences Financial Resilience, which subsequently has a significant positive effect on Firm Value. Furthermore, the mediation analysis confirms that Financial Resilience fully mediates the relationship between ESG Performance and Firm Value. These findings indicate that ESG initiatives create firm value indirectly by strengthening firms’ financial capacity to withstand economic uncertainty and sustain long-term performance. This study contributes to the literature by integrating Stakeholder Theory and the Resource-Based View to explain Financial Resilience as the mechanism through which ESG Performance is transformed into sustainable firm value. The findings also provide practical implications for managers and policymakers in developing resilience-oriented ESG strategies to enhance long-term corporate competitiveness.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - R Nelly Nur Apandi
AU  - Irsyad Fauzan Prasetya
AU  - YR Rozmita Dewi
AU  - Xoldorov Sardor
PY  - 2026
DA  - 2026/09/02
TI  - Short-Term Performance or Long-Term Sustainability? The Role of ESG Performance and Financial Resilience in ASEAN Manufacturing Firms
BT  - Proceedings of the International Conference on Digital Transformation in Business and Organisations (ICDTBO 2026)
PB  - Atlantis Press
SP  - 56
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-754-5_6
DO  - 10.2991/978-94-6239-754-5_6
ID  - Apandi2026
ER  -