Beyond Net Income: Marketing Activities and the Moderating Role of ESG Performance in Comprehensive Financial Performance

Authors

  • Mochammad Ibnu Rozy Department of Accounting, Faculty of Economics, Universitas Islam Kadiri
  • Marhaendra Kusuma Department of Accounting, Faculty of Economics, Universitas Islam Kadiri
  • Ahmad Yani Department of Accounting, Faculty of Economics, Universitas Islam Kadiri

DOI:

https://doi.org/10.26905/jrei.v7i2.17937

Keywords:

Comprehensive financial performance, ESG performance, Environmental performance, Marketing activities, Southeast Asia and China

Abstract

This study examines the relationship between marketing activities and comprehensive financial performance and investigates whether environmental, social, and governance (ESG) performance moderates this relationship. Using 3,726 firm-year observations from listed companies in Southeast Asia and China during 2019–2025, the study employs moderated regression analysis, alternative-proxy robustness tests, and two-stage least squares (2SLS) estimation. Comprehensive financial performance is measured as total comprehensive income relative to total assets, while marketing intensity is proxied by marketing and advertising expenses relative to total assets. The reported results indicate a positive association between marketing activities and comprehensive financial performance. Aggregate ESG performance and its environmental, social, and governance pillars exhibit positive interaction effects, suggesting that stronger ESG performance is associated with a stronger marketing–performance relationship. The environmental pillar shows the highest reported explanatory power among the individual ESG models. This study extends research on marketing and corporate sustainability by examining comprehensive financial performance in emerging Asian markets.

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Published

2026-08-18

Issue

Vol. 7 No. 2 (2026): Agustus 2026

Section

Articles

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