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The study aims to investigate the effect of several sustainability indicators on firms’ value. Panel data of 1914 observations from the UK and Turkey from 2016 to 2021 with a fixed effect model are used to estimate the results. The findings reveal that ESG indicators associate significantly with firms’ value. However, ESG indicators exhibit a stronger significant association with Tobin’s Q than stock prices and market-to-book value. This indicates that sustainability indicators are linked to the firm’s overall market value and the long-term run market valuation rather than just the stock market value. The results also reveal that while board independence, board expertise, and diversity exhibit a significant and positive association with firms’ value, board size negatively affects firms’ value. The current study provides unique contributions and comprehensive evidence based on different institutional and country sustainability enforcement statuses. It offers empirical implications for regulatory authorities and other developing countries to provide a comprehensive ESG reporting framework.

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