<![CDATA[Investor attention is increasingly shifting beyond financial performance to include environmental, social, and governance factors, as companies’ commitment to sustainable and ethical practices can influence perceptions, long-term value, and overall corporate performance. This study examines the impact of ESG performance on firm value, with financial performance as a mediating variable, focusing on non-financial companies listed on the Indonesia Stock Exchange. A quantitative approach was employed, using secondary data from Bloomberg and financial statements of 30 purposively selected companies over the 2020–2023 period. Data were analyzed using descriptive statistics and Partial Least Squares–Structural Equation Modeling. The findings indicate that while aggregate ESG performance enhances financial performance, it does not directly affect firm value. Environmental and social performance influence firm value both directly and indirectly, whereas governance improvements primarily strengthen financial performance without a direct effect on firm valuation. Financial performance was found to mediate the relationship between ESG performance and firm value. These results highlight the differentiated roles of ESG components, showing that environmental and social initiatives contribute to both financial and market outcomes, while governance mainly supports financial efficiency. The study implies that companies should strategically align ESG initiatives with financial management to maximize firm value through indirect channels.]]>
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