A Proposed Intelligent Accounting and Auditing Framework for Reforming ESG Disclosure and Enhancing Sustainability Governance in the Egyptian Capital Market: A Comparative Applied Research | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Volume 7, Issue 1, January 2026, Pages 405-463 PDF (1.04 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2025.417007.2363 | ||
| Authors | ||
| Amin ElSayed Ahmed Lotfy* 1; Hajar Abdel Rahman Abdel Fattah2 | ||
| 1رئيس جامعة بنى سويف السابق | ||
| 2استاذ مساعد بكلية التجارة جامعة بنى سوييف | ||
| Abstract | ||
| Purpose and Design: This research aims to evaluate the current state of Environmental, Social, and Governance (ESG) disclosure and assurance practices among Egyptian listed companies and proposes an intelligent accounting and auditing framework for restructuring ESG reporting. The purpose is to enhance sustainability governance, enable integration with the digital economy, and improve Egypt’s ESG index participation in the capital market. Methodology and Approach: The Research adopts a mixed-methods approach, combining quantitative analysis of ESG disclosures of EGX-listed companies (2020–2024) with qualitative comparative case studies from developed capital markets (e.g., EU, Japan, and South Korea). It uses content analysis, disclosure scoring, and regression modeling to examine the relationship between ESG assurance, governance quality, and reporting outcomes. Findings: The findings reveal significant variability in ESG reporting quality, limited assurance practices, and fragmented governance integration across Egyptian listed firms. Notably, many EGX-listed companies are not registered in Egypt’s ESG index. In comparison with global benchmarks, Egypt’s ESG disclosure is less mature and lacks consistency, transparency, and comparability. The proposed framework introduces a restructuring pathway leveraging AI-based tools, standardization mechanisms, and independent assurance to improve ESG accountability. Originality and Value: This research is original in proposing an intelligent audit-accounting reform model tailored to Egypt’s unique capital market structure. It fills a significant empirical and policy gap by integrating ESG disclosure with strategic sustainability governance reforms. The value lies in enabling policy makers, regulators, and companies to operationalize ESG reporting into effective governance and investment attraction mechanisms. Theoretical, Practical, and Social Implications: Theoretically, the Research extends ESG reporting literature by integrating smart audit systems. Practically, it provides a pathway for the Financial Regulatory Authority (FRA) and EGX to mandate smart ESG disclosures. Socially, the Research promotes accountability, transparency, and sustainable development in Egypt’s capital market. | ||
| Keywords | ||
| ESG disclosure; sustainability governance; accounting innovation | ||
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