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

This paper explores the status quo of environmental goals’ disclosures (EGDs) and empirically tests its impact on Egyptian corporate sustainability ratings and firm value. This study finds 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. The results show that companies that disclose more EGDs gain membership of the Egyptian Sustainability
Index, as well as 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 contributes to understanding the contradictory argument based on the socio-political theories and voluntary disclosure perspective by understanding their role in explaining the relationship between corporate EGDs, sustainability ratings, and firm value.