The Effect of Digital Washing on Firm Value: The Mediating Role of ESG Performance

Digital transformation has become a strategic pillar for firms; however, it requires substantial time, resources, and investment. These challenges have led to the emergence of an alternative phenomenon, digital washing. Using 2527 samples spanning six years, this study investigates the effect of digital washing on firm value and examines whether ESG performance mediates this relationship in the context of ASEAN-4, which includes Malaysia, Indonesia, the Philippines, and Thailand, together with Vietnam. Path analysis and bootstrapping were conducted. The research results indicate that digital washing positively affects firm value, yet ESG performance does not play a statistically significant mediating role. These findings enrich the literature by clarifying the effects of digital washing; moreover, they provide updated empirical evidence from the ASEAN-4 and Vietnam, where research on digital washing remains scarce.