The Impact of ESG Scores on Stock Price Volatility: An Empirical Study of Selected Listed Firms in Egypt (2015–2024) | ||
| مجلَّة إبداع في الآداب والدراسات الإنسانيّة والاجتماعيّة | ||
| Volume 1, Issue 4.1, July 2025, Pages 1357-1381 PDF (1.17 M) | ||
| Document Type: ملخَّصات رسائل الماجستير والدكتوراه. | ||
| DOI: 10.21608/ebdaa.2025.401168.1037 | ||
| Author | ||
| كريستينا ايوب* | ||
| كلية الدراسات العليا، الاكاديمية العربية للعلوم والتكنولوجيا والنقل البحرى | ||
| Abstract | ||
| Purpose: The purpose of this paper is to examine how the sustainability practices of companies in terms of environmental, social score and governance (ESG) scores influence stock performance in Egypt. Methodology: Taking a sample of listed companies in the Egyptian Stock Exchange (EGX) from 2015 to 2024, two panel data regression models are measured; the first model tests the impact of ES score on stock volatility, while the second examines the impact of the G score on stock volatility. Firm size, profitability, leverage and stability are included as control variables. Findings: The empirical results reveal a negative and significant correlation between the governance score and stock price volatility, and no correlation between the ES and stock volatility. Those findings suggest that investors prioritize corporate governance over environmental and social issues in their decision making when evaluating investment risks. Practical Implications: Sevel implications are drawn to companies, investors and policy makers. Companies should continue enhancing their governance practices while disclosing more environmental and social data. Investors with a low-risk appetite should consider investing in companies with high corporate governance scores. Policy makers should keep incentivizing and regulating ESG, while also raising ESG awareness, giving greater consideration to the environmental and social risks and opportunities. Value: This paper provides valuable insights into the role of ESG investing by exploring its impact on stock performance in Egypt, addressing a gap in the literature on developing countries and considering that ESG investing is at earlier stages in developing markets in comparison to developed countries. | ||
| Keywords | ||
| ESG investing; Stock Volatility; EGX | ||
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