Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt
Hamdy, A., Gamal Abdel-Kader, M., Abdel Karim Mahmoud (Corresponding author), K. (2022). Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt. EKB Journal Management System, 13(4), 489-526. doi: 10.21608/jces.2022.285191
Asmaa Hamdy; Magdy Gamal Abdel-Kader; Kholoud Abdel Karim Mahmoud (Corresponding author). "Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt". EKB Journal Management System, 13, 4, 2022, 489-526. doi: 10.21608/jces.2022.285191
Hamdy, A., Gamal Abdel-Kader, M., Abdel Karim Mahmoud (Corresponding author), K. (2022). 'Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt', EKB Journal Management System, 13(4), pp. 489-526. doi: 10.21608/jces.2022.285191
Hamdy, A., Gamal Abdel-Kader, M., Abdel Karim Mahmoud (Corresponding author), K. Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt. EKB Journal Management System, 2022; 13(4): 489-526. doi: 10.21608/jces.2022.285191

Investigating the Impact of Sustainability on Corporate Profitability: Evidence from Egypt

المجلة العلمية للدراسات التجارية والبيئية
Article 53, Volume 13, Issue 4, October 2022, Page 489-526  XML PDF (639.95 K)
Document Type: المقالة الأصلية
DOI: 10.21608/jces.2022.285191
View on SCiNiTO View on SCiNiTO
Authors
Asmaa Hamdy* 1; Magdy Gamal Abdel-Kader* 2; Kholoud Abdel Karim Mahmoud (Corresponding author)* 3
1Accounting Assistant Professor, October University for Modern Sciences and Arts
2Professor Doctor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt
3Assistant Professor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt
Abstract
The aim of this research is to investigate whether corporate sustainable performance (CSP) impacts corporate profitability. The study’s sample includes the most active 100 listed firms in the Egyptian stock exchange (EGX) in terms of their trading value. Empirical analysis has been conducted to examine the impact of sustainability environmental, social, and governance (ESG) factors on corporate profitability using the regression model. In addition, the study seeks to determine whether highly ranked businesses outperform those with lower rankings in terms of sustainability. A parametric t-test was used. The study demonstrates a considerable positive association between sustainability and company profitability metrics, measured by Return on Assets (ROA), Return on Equity (ROE), and Return on Invested Capital (ROIC). Furthermore, empirical data indicate that businesses that adopt outstanding sustainable improvement strategies report increased profitability and lower levels of risk.
Keywords
Sustainability; Profitability; Environmental Performance; Social Performance; Corporate Governance
Statistics
Article View: 71
PDF Download: 143