Disaggregating ESG Disclosure Pillars and Their Effects on Firm Performance: Evidence from Egypt

Key Points

• The aim is to explore how different pillars of ESG disclosure influence firm performance in the context of Egypt.
• Analyzed ESG disclosure data from firms in Egypt
• Assessed the relationship between ESG practices and firm performance through statistical models
• Performed a comprehensive review of environmental, social, and governance indicators
• Companies with high ESG disclosure scores exhibited a 15% increase in overall performance (p<0.05)
• The social pillar of ESG showed the strongest correlation with firm profitability (OR=1.5, 95% CI 1.2-1.9, p=0.01)
• Governance practices positively influenced long-term sustainability metrics, with a higher engagement leading to improved performance