An examination of corporate environmental goals disclosure, sustainability performance and firm value – An Egyptian evidence

Helfaya, Akrum; Aboud, Ahmed; Amin, Essam

Abstract

This paper explores the status quo of environmental goals disclosure (EGD) and empirically tests its impact on Egyptian corporate sustainability ratings and firm value. We find that Egyptian companies show a large degree of variability and inconsistency in their EGDs. However, EGDs have a positive impact on sustainability ratings and firm value. Companies that release more EGDs are more likely to gain membership in the Egyptian Sustainability Index and attain a high sustainability rank, to which the capital market reacts positively. Our findings have important implications, particularly for policymakers, companies, investors, environmental activists, and other stakeholder groups in developing nations. This study contributes insights from EGD practices in Egypt to the existing literature on corporate social responsibility (CSR) in developing nations. It also helps to resolve the conflicting predictions of socio-political theories and the voluntary disclosure theory, showing how both perspectives help to explain the relationships among corporate EGDs, sustainability ratings, and firm.

• Journal Article Type: Article
• Acceptance Date: Aug 26, 2022
• Online Publication Date: Jul 10, 2023
• Publication Date: 2023-09
• Deposit Date: May 30, 2023
• Publicly Available Date: Jul 11, 2025
• Journal: Journal of International Accounting, Auditing and Taxation
• Print ISSN: 1061-9518
• Electronic ISSN: 1879-1603
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 52
• Article Number: 100561
• DOI: https://doi.org/10.1016/j.intaccaudtax.2023.100561
• Keywords: Environmental goals, Sustainability disclosure, sustainability ratings, Firm value, Egypt.