Impact of ESG Disclosure on Stock Returns: Evidence from Egyp Firms with Tax and Governance Effects

Abobaker Hussainey, Zahran Umayah, Hafez Uzmany and Ismail
Additional contact information
Abobaker Hussainey: Department of Management and Organization, German University in Cairo
Zahran Umayah: Department of Accounting and Finance, Kemmy Business School, University of Limerick
Hafez Uzmany: Department of Accounting, Faculty of Commerce, Zagazig University
Ismail: Department of Management and Organization, German University in Cairo

Journal Economic Business Innovation, 2025, vol. 1, issue 4, 461-478

Abstract: Purpose: This study aims to examine the effect of environmental, social, and governance (ESG) disclosure on stock returns with the moderating effect of tax rate, family ownership and foreign board members in Egypt between 2020 and 2024. Methods: Using a panel of 735 firm-year observations for the top 100 Egyp firms listed on the EGX, the study employs ordinary least squares (OLS) regression together with industry- and year-fixed effects. The analysis controls for size, profitability, leverage, and capital intensity at the firm level. Results: The results indicate that ESG disclosure is positively and significantly related to return (β2 = 0.169), which means that stronger ESG disclosure is connected with better stock performance. Furthermore, tax rate (ETR) has a negative influence on ESG disclosure, and family and foreign board members positively influence the ESG disclosure. Novelty: This is the first study that provides insights into the determinants of ESG disclosure in an emerging market (Egypt) and the economic implications. Implications: These findings underscore the need for ESG transparency for investors and policymakers, and the role of governance in enabling sustainable financial performance.

Keywords: ESG disclosure; stock returns; tax rate; family ownership; governance (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://analysisdata.co.id/index.php/JEBI/article/download/136/200 (application/pdf)
https://analysisdata.co.id/index.php/JEBI/article/view/136 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebi:journl:v:1:y:2025:i:4:p:461-478

DOI: 10.69725/jebi.v1i4.136

Access Statistics for this article

Journal Economic Business Innovation is currently edited by Agus Dwianto, S.E., M.Ak

More articles in Journal Economic Business Innovation from PT. Inovasi Analisis Data
Bibliographic data for series maintained by Prof. Agus Dwianto ().