|
|
 |
| |
|
|
|
Statistical Analysis to Measure the Impact of ESG Disclosure on Firm Value and Stock Performance: Evidence from Saudi Arabia |
|
|
|
PP: 403-453 |
|
|
doi:10.18576/jsap/150306
|
|
|
|
Author(s) |
|
|
|
Samhi Abdelaty DIFALLA,
|
|
|
|
Abstract |
|
|
| Current study seeks to further analyze ESG disclosure effects on Saudi corporate value and stock performance. Especially in developing markets like Saudi Arabia. This research can also help investors and policymakers understand how ESG scores, when combined with financial criteria, can accurately assess a companys performance, especially in developing economies. The final sample 36 companies (180 company-year observations) by eliminating outlier values and companies that lacked sufficient data on the variables of our study. The results indicate that ESG disclosure has a favourable effect on Tobins Q, with significant and positive independent factors (EVN, SCO, GOV, ESG score) (β = 0.383; 0.064; 0.382; 0.301; Sig. < 0.05). So, findings indicate that ESG ratings influence firm value. Furthermore, ESG disclosure positively impacts ROA (EVN, SCO, GOV, and ESG score) (β = 0.118, 0.074, 0.124, and 0.119; Sig. < 0.05),so, ESG disclosure has a positive significant impact on stock performance. |
|
|
|
|
|
|
|
