The Relationship between Ownership Structure and the Accuracy of Analysts’ Forecasts: The Mediating Role of Climate Change Disclosure- Evidence from the Egyptian Stock Market

This study aims to examine the nature and scope of climate change disclosure CCD as a mediating variable in the relationship between ownership structure characteristics (institutional, familial, foreign, and concentrated) and the accuracy of financial analysts' forecasts for non-financial Egyptian firms listed on the stock exchange, which are required to comply with the Egyptian Financial Regulatory Authority (EFRA) decisions No. 107 and No. 108, during the period from 2021 to 2023.
This study employs multiple regression analysis and path analysis using the AMOS software program to investigates whether the nature and scope of CCD mediate the relationship between ownership structure (institutional, family, foreign, and concentrated ownership) and analysts’ forecast accuracy, using data from Egyptian listed non-financial firms from 2021 to 2023.
 The findings of this study show a significant positive relationship between institutional and family ownership and the nature of climate disclosures (environmental, social, sustainable, governance, strategic, risk management, metrics, and targets). Conversely, concentrated ownership negatively affects the nature of disclosure, while foreign ownership shows no significant effect. Similar results are observed when analyzing the scope of climate change disclosure.
On the other hand, this study finds that institutional and family ownership improve forecast accuracy, while foreign and concentrated ownership exert negative effects. Environmental, sustainability, and governance-related disclosures also improve forecast accuracy, while social, strategic, risk management, metrics, and targets disclosures have no significant impact.
More importantly, the study highlights that environmental and governance-related disclosures mediate the relationship between ownership structure and forecast accuracy, whereas social and risk-related disclosures do not. These findings have important practical implications, emphasizing, for the first time, the mediating role of climate change disclosure in linking ownership structures to forecast accuracy in Egyptian firms.
The study recommends Conducting joint studies between researchers in the field of accounting and related natural sciences to enhance the measurement and disclosure of climate change impacts. It also recommended climate disclosures into green governance frameworks for sustainable financing and investigating the role of board characteristics and AI technologies in enhancing disclosure quality and forecast accuracy, in line with Egyptian Vision 2030.