The Association between Green Innovation and ESG performance and its Impact on Stock Price Crash Risk | ||
| مجلة الاسکندرية للبحوث المحاسبية | ||
| Article 16, Volume 9, Issue 2, May 2025, Pages 191-237 PDF (1017.56 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/aljalexu.2025.431090 | ||
| Author | ||
| Samar Mansour Elsebaai Mohammed | ||
| Lecturer in the Department of Accounting and Auditing, Faculty of Commerce, Suez Canal University | ||
| Abstract | ||
| Recently, according to challenges of environmental and social concerns, both of Green Innovation and ESG performance are considered from the most important concepts. ESG index is very essential as it express the company's commitment to sustainable development. Therefore the main objective of this research is to analyze the association between green innovation and ESG performance which is crucial for investors, analysts, policymakers, and corporate stakeholders. Egypt has placed great attention to ESG practices besides implementing the concept of green development. Corporate green innovation has gradually become a recent concept that play vital role in reducing environmental pollution, promoting ESG performance and other environmental activities. This study aims to investigate the association between green innovation and Environmental, Social, and Governance (ESG) performance, and examines how this relationship influences stock price crash risk. Additionally this study explores whether firms that actively engage in green innovation and exhibit strong ESG performance are less likely to experience extreme negative stock price movements. Using empirical data from publicly listed companies a sample of 53 companies from different sectors listed in Egyptian Stock Exchange (EGX 100) for the years 2019-2023. The findings suggest that green innovation positively contributes to ESG ratings, and that higher ESG performance is associated with a reduced risk of stock price crashes. The positive Association between GI and ESG performance will results in a negative impact on stock price crash risk. | ||
| Keywords | ||
| Green Innovation; ESG Performance; Stock Price Crash Risk; EGX100 | ||
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