Objective: Analysis of the relationship between voluntary disclosure of greenhouse gas emissions and the financial performance of companies by applying to (9) listed companies on the Egyptian
stock exchange. Design and Methodology: The applied study was conducted on a sample of companies listed on the Egyptian Stock Exchange covering five sectors (gas, petroleum, basic resources, chemicals and financial services excluding banks, construction and building materials).The study relied on the method of content analysis in the examination of financial and sustainable annual reports of companies listed on the Egyptian Stock Exchange during the period from (2014) to (2016), to test the basic research hypothesis, which derived from three sub-assumptions that reflect the relationship between voluntary disclosure of GHG emissions and financial performance, the multiple regression method was used to analyze the results. Results and Recommendations: The Results of the research indicate the correlation between the level of voluntary disclosure of greenhouse gas emissions a positive relationship with the financial performance of companies, based on this, the researcher recommends, the need for a professional organization that sets standards for the disclosure of greenhouse gas emissions and monitoring their implementation, which is reflected in the quality of financial reports and sustainable companies, and the establishment of government agencies to monitor the implementation of companies to the laws and regulations of environmental protection and the signing of financial and non-financial sanctions on companies that violate laws and regulations, especially greenhouse gas emissions, and to be part of the
- 4 -
terms of registration of companies emitting emissions on the Egyptian Stock Exchange, the disclosure of emissions according to a unified report issued by the stock exchange to encourage companies to publish more information on emissions. Authenticity and Addition: Some previous studies have used the content analysis method for annual financial reports to examine the relationship between voluntary disclosure of greenhouse gas emissions and financial performance in developed countries such as Japan, Australia and Indonesia, while the current research provides a modest contribution and addition to the current research's in this area through the use of the results of the method of analysis of the content of the annual reports of a sample of companies registered in the Egyptian Stock Exchange as there is a great difference between the environment in developed countries and the Egyptian environment. The present study was conducted on a sample of companies listed on the Egyptian Stock Exchange and included five sectors during the period from (2014) to (2016), in view of these limitations, further research is needed to disclose GHG emissions and their impact on stock prices. The quality of financial reports and the efficiency of investment decisions by applying them to sectors other than those covered by the present research. |
