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383160

Corporate Sustainable Performance and Profitability: Exploring the Moderating Role of Liquidity and Stock Volatility in Egypt

Article

Last updated: 04 Jan 2025

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Abstract

The aim of this study is to investigate whether Corporate sustainable performance impacts the firm profitability by exploring the moderating role of liquidity and stock volatility in Egypt. The objective of the study is to encourage and promote sustainability practices. This Empirical study used a quantitative approach to investigate the impact of corporate sustainability environmental, social and governance (ESG) factors on firm profitability in Egypt. The study's sample includes the 30 listed firms in S&P/EGX ESG from 2010 till 2022. Two regression models were used with Corporate sustainable performance as an independent variable measured by ESG scores disclosures by Egyptian exchange and firm profitability measured by ROA as a dependent variable and the other model with Corporate sustainable performance as an independent variable measured by intensity index and firm profitability as a dependent variable measured by (ROA). Descriptive analysis and regression assumptions tests, including cross-sectional dependence, and heteroscedasticity were conducted using STATA 17 to ensure data suitability. Results demonstrate an insignificant relation between corporate sustainable performance measured by ESG scores and firm profitability measured by ROA in the first regression model. Regarding the second regression model, the results indicated that there is a positive significant relation between corporate sustainable performance measured by Intensity index and firm profitability measured by (ROA). Furthermore, empirical data indicated that companies that display a high degree of commitment to sustainable practices and aggressively pursue admission into the sustainability index tend to earn the highest level of profitability.

DOI

10.21608/jsec.2024.383160

Keywords

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

Authors

First Name

Nada

Last Name

Salah Hussein Mahmoud ElGabry

MiddleName

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Affiliation

October University for Modern Sciences and Arts (MSA)

Email

nashussein@msa.edu.eg

City

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Orcid

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Volume

54

Article Issue

3

Related Issue

50668

Issue Date

2024-10-01

Receive Date

2024-08-02

Publish Date

2024-10-01

Page Start

143

Page End

182

Print ISSN

2636-2562

Link

https://jsec.journals.ekb.eg/article_383160.html

Detail API

https://jsec.journals.ekb.eg/service?article_code=383160

Order

383,160

Type

المقالة الأصلية

Type Code

914

Publication Type

Journal

Publication Title

المجلة العلمية للإقتصاد و التجارة

Publication Link

https://jsec.journals.ekb.eg/

MainTitle

Corporate Sustainable Performance and Profitability: Exploring the Moderating Role of Liquidity and Stock Volatility in Egypt

Details

Type

Article

Created At

30 Dec 2024