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285191

Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt

Article

Last updated: 24 Dec 2024

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المحاسبة

Abstract

The aim of this research is to investigate whether corporate sustainable performance (CSP) impacts corporate profitability. The study's sample includes the most active 100 listed firms in the Egyptian stock exchange (EGX) in terms of their trading value. Empirical analysis has been conducted to examine the impact of sustainability environmental, social, and governance (ESG) factors on corporate profitability using the regression model. In addition, the study seeks to determine whether highly ranked businesses outperform those with lower rankings in terms of sustainability. A parametric t-test was used. The study demonstrates a considerable positive association between sustainability and company profitability metrics, measured by Return on Assets (ROA), Return on Equity (ROE), and Return on Invested Capital (ROIC). Furthermore, empirical data indicate that businesses that adopt outstanding sustainable improvement strategies report increased profitability and lower levels of risk.

DOI

10.21608/jces.2022.285191

Keywords

Sustainability, profitability, Environmental Performance, Social Performance, Corporate Governance

Authors

First Name

Asmaa

Last Name

Hamdy

MiddleName

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Affiliation

Accounting Assistant Professor, October University for Modern Sciences and Arts

Email

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City

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Orcid

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First Name

Magdy

Last Name

Gamal Abdel-Kader

MiddleName

-

Affiliation

Professor Doctor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt

Email

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City

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Orcid

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First Name

Kholoud

Last Name

Abdel Karim Mahmoud (Corresponding author)

MiddleName

-

Affiliation

Assistant Professor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt

Email

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City

-

Orcid

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Volume

13

Article Issue

4

Related Issue

38874

Issue Date

2022-10-01

Receive Date

2022-10-01

Publish Date

2022-10-01

Page Start

489

Page End

526

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_285191.html

Detail API

https://jces.journals.ekb.eg/service?article_code=285191

Order

53

Type

المقالة الأصلية

Type Code

986

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات التجارية والبيئية

Publication Link

https://jces.journals.ekb.eg/

MainTitle

Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt

Details

Type

Article

Created At

24 Dec 2024