Study the impact of sustainability reports on the financial performance of companies - an applied study on real estate companies listed in the Egyptian social responsibility index S / P / EGX-ESC

Bekhet, Mohamed Baha Elden; Abd El Salam, Mohamed; Abd El Razek, Marwa Mohamed

doi:10.21608/aljalexu.2019.56871

Study the impact of sustainability reports on the financial performance of companies - an applied study on real estate companies listed in the Egyptian social responsibility index S / P / EGX-ESC

Document Type : Original Article

Authors

¹ Accounting Department Arab Academy for Science and Technology and Maritime Transport Alexandria Egypt

² Operations Research Department Arab Academy for Science and Technology and Maritime Transport Alexandria Egypt

10.21608/aljalexu.2019.56871

Abstract

The study aimed to test the impact of sustainability reports on the financial performance of real estate companies listed in the Egyptian Social Responsibility Index (S / P \ EGX-ESG). The inclusion of companies in the Egyptian Social Responsibility Index increases their profitability and likewise helps investors and stakeholders make rational economic decisions.
In order to achieve the objective of the study, the annual reports of six companies listed in the Egyptian Social Responsibility Index (S / P \ EGX-ESG) were examined by 1181 views during the period from 2007 to 2010 and 2010 as a base year. Financial performance was measured by return on assets, return on equity, leverage ratio and liquidity ratio. Sustainability reports were measured on the basis of disclosure of the Egyptian Social Responsibility Index (S / P \ EGX-ESG) items. Governance and environmental and governance issues The study used a simple logistic regression analysis method using the SPSS program.
Based on the logistic regression analysis, the study found a statistically significant relationship between sustainability and financial performance reports, a statistically significant relationship between the axis of governance and financial performance of companies and a statistically significant relationship between the environment and society axis and the return on equity. Statistically significant between the environment and society axis and the return on assets, the leverage ratio and the liquidity ratio of the real estate companies listed in the Egyptian social responsibility index S \ P \ EGX-ESG
This study differs from other studies in terms of the methodology followed by using simple logistic regression analysis in terms of methods and measurement of dependent variables taken years before the companies were included in the index and after the companies were included in the index.
Finally, the study recommends the need to abide by the rules of governance and environmental laws and society and the integration of companies in the community work and report on those activities because of the profits of such reports in the short and long term.

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