The Mediating Role of Big Data Analytics on the Relationship Between Environmental, Social, and Governance (ESG) Scoring and Firm Value

This study investigates the role of big data analytics (BDA) on the relationship between environmental, social, and governance (ESG) scoring and Saudi listed firm value over the four-year period from 2021 to 2024. We employed structural equation modeling (SEM) as a path analysis and a 5000-replication bootstrap method to evaluate the mediation effect of BDA and to enhance inferential robustness. The findings indicate a partial mediation effect of BDA on the relationship between ESG scoring and Tobin’s Q, indicating that ESG contributes to firm value partly through BDA capabilities. The findings underscore the role of leverage ratio and firm size as predictors of BDA effect on firm value. The study is grounded in stakeholder, signaling, and resource-based theories, arguing that ESG performance builds stakeholder trust, ESG scores signal firm value, and BDA capabilities act as strategic assets that enhance market valuation. The findings emphasize the importance of Saudi investors supporting the integration of BDA within ESG practices to maximize firm value, consistent with stakeholder theory. This study contributes to the literature in two ways. First, it demonstrates the mediating role of BDA in the ESG–firm value nexus, reinforcing the market relevance of ESG signals in line with signaling and resource-based perspectives. Second, it extends empirical evidence on the strategic role of BDA in ESG contexts within emerging markets. For policymakers, the results suggest that ESG initiatives require complementary investments in BDA capabilities to achieve their value potential.