Exploring the Impact of ESG Disclosure on Corporate Stock Market Performance in Egypt

Abstract

The purpose of this research is to study the impact of environmental, social, and governance (ESG) disclosure on corporate stock market performance. The sample for this research consists of 32 Egyptian companies listed in the EGX100 index from 2018 to 2022. The main finding, based on regression analysis (Fixed Effects Model), is that there is a significant positive impact of ESG disclosure on corporate stock market performance in Egypt. This result would help the Egyptian market authorities realize the importance of integrating ESG information into the financial reports of the listed companies. It could also help in developing effective disclosure procedures to provide shareholders with useful information. This study contributes to the growing body of literature on ESG because it provides a comprehensive overview of ESG practices and their impact on stock market performance, focusing on the Egyptian market as one of the most important emerging markets in the MENA region. It provides valuable insights for investors and policymakers about ESG practices.