Aristanti Widyaningsih, Toni Heryana, Nadiah Abd Hamid, Soliha Sanusi, Maisarah Mohamed Saat, Iqbal Lhutfi
This study examines how AI adoption, board gender diversity and CEO succession influence environmental, social and governance (ESG) performance and how ESG performance contributes to sustainable firm value creation in ASEAN firms. Drawing on the resource-based view and stakeholder theory, the study investigates the governance and technological mechanisms through which firms enhance sustainability performance and market valuation. Using a balanced panel dataset of 355 listed firms from five ASEAN countries over the 2020–2023 period, the hypotheses are tested using panel ordinary least squares (OLS) regression with heteroskedasticity-robust standard errors. To assess the stability of the findings, supplementary predictive analysis is conducted using partial least squares structural equation modelling (PLS-SEM). The results indicate that AI adoption, board gender diversity and CEO succession are positively associated with ESG performance. ESG performance is also positively associated with firm value, suggesting that sustainability practices contribute to market valuation. While audit quality shows a limited moderating influence, sustainability committees significantly condition the relationship between ESG performance and firm value. Importantly, the panel OLS results are broadly consistent with the supplementary PLS-SEM analysis, providing additional support for the proposed theoretical framework. This study contributes to the ESG and corporate governance literature by integrating digital transformation, leadership dynamics and board diversity within a unified sustainability framework. The findings offer practical implications for policymakers, regulators and corporate leaders seeking to strengthen ESG performance and sustainable value creation in emerging markets. © 2026 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung, Indonesia; Faculty of Accounting, Universiti Teknologi MARA, Shah Alam, Malaysia; Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Malaysia; Faculty of Management, Universiti Teknologi Malaysia, Bahru, Malaysia
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