The moderating efect of dividend policy on the relationship between the corporate risk disclosure and frm value: evidence from Egypt

Abstract

This paper investigates the efects of corporate risk disclosure (CRD) and dividend policy (DP) on frm value (FV) for non-fnancial companies listed on the Egyptian Stock Exchange. Using a sample of 45 non-fnancial frms from 2016 to 2022, which yielded 315 frm-year observations, we fnd a signifcant positive relationship between CRD and FV, supporting signaling theory. DP also exhibits a positive association with FV. Additionally, DP positively moder‑ ates the CRD-FV relationship, indicating a complementary efect where dividends enhance the CRD’s positive signal. The results are robust across fxed efects, random efects, and pooled OLS models. This study makes key empirical and theoretical contributions by validating the hypothesized relationships in the Egyptian context. It also provides managerial insights into value drivers for public frms in developing economies. Further research can corroborate the fndings in other emerging markets. Overall, this paper enhances understanding of the linkages between risk disclosure, dividend policy, and frm valuation outcomes.