Panel data analysis shows ESG does not significantly affect firm value or size in the energy sector.
The purpose of this study is to examine how Environmental, Social, and Governance (ESG) factors affect company value, using firm size as a mediating variable. Two panel data regression models are used for the testing. The first model examines how ESG affects firm size, whereas the second model examines how firm size affects firm value. 17 companies throughout a three-year period are included in the statistics. Using EViews software, the Chow, Hausman, and Lagrange Multiplier tests are used to choose model estimating techniques. The findings indicate that neither business size nor firm value is significantly impacted by ESG. According to the findings, firm size and firm value are not significantly impacted by ESG or firm size. This suggests that the indirect association between business size and ESG and firm value is not statistically supported over the time period and sample under study. These results highlight how crucial it is to choose the right variables and use the right analytical techniques when conducting research on how ESG affects overall business success.
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Widajatun et al. (2025) studied this question.
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