The Effect of Environmental, Social, and Governance (ESG) Ratings on Financial Performance: Evidence from MENA Countries

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Social, and Governance (ESG) Ratings on Financial Performance: Evidence from MENA Countries</title> <meta name="description" content="The Effect of Environmental, Social, and Governance (ESG) Ratings on Financial Performance: Evidence from MENA Countries"> <meta name="keywords" content="ESG ratings, financial performance, MENA countries, environmental disclosures"> <meta name="viewport" content="width=device-width, initial-scale=1, minimum-scale=1, maximum-scale=1, user-scalable=no"> <meta charset="utf-8"> <link href="https://cdn.waset.org/favicon.ico" type="image/x-icon" rel="shortcut icon"> <link href="https://cdn.waset.org/static/plugins/bootstrap-4.2.1/css/bootstrap.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/plugins/fontawesome/css/all.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/css/site.css?v=150220211555" rel="stylesheet"> </head> <body> <header> <div class="container"> <nav class="navbar navbar-expand-lg navbar-light"> <a 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87513</div> </div> </div> </div> <div class="card publication-listing mt-3 mb-3"> <h5 class="card-header" style="font-size:.9rem">The Effect of Environmental, Social, and Governance (ESG) Ratings on Financial Performance: Evidence from MENA Countries</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Taha%20Almarayhe">Taha Almarayhe</a> </p> <p class="card-text"><strong>Abstract:</strong></p> This study addresses the gap in understanding the effect of environmental, social, and governance (ESG) practices on firm performance within the Middle East and North Africa (MENA) region. Using a sample of 340 publicly traded firms across ten MENA countries (2007–2017) and employing ordinary least squares (OLS) regression, the study evaluates how ESG ratings impact both accounting-based performance measures—such as return on assets (ROA), return on equity (ROE), and earnings per share (EPS)—and market-based measures like Tobin’s Q and dividend yield. Results reveal that ESG ratings positively and significantly influence financial performance, particularly in countries with strong regulatory environments. This research contributes empirical insights to the literature on ESG’s financial impact, particularly by comparing cross-country data within the MENA region. It provides valuable guidance for investors and managers aiming to enhance financial outcomes through sustainable business practices. <iframe src="https://publications.waset.org/abstracts/194370.pdf" style="width:100%; height:400px;" frameborder="0"></iframe> <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=ESG%20ratings" title="ESG ratings">ESG ratings</a>, <a href="https://publications.waset.org/abstracts/search?q=financial%20performance" title=" financial performance"> financial performance</a>, <a href="https://publications.waset.org/abstracts/search?q=MENA%20countries" title=" MENA countries"> MENA countries</a>, <a href="https://publications.waset.org/abstracts/search?q=environmental%20disclosures" title=" environmental disclosures"> environmental disclosures</a> </p> <a href="https://publications.waset.org/abstracts/194370/the-effect-of-environmental-social-and-governance-esg-ratings-on-financial-performance-evidence-from-mena-countries" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/194370.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">11</span> </span> </div> </div> </div> </main> <footer> <div id="infolinks" class="pt-3 pb-2"> <div class="container"> <div style="background-color:#f5f5f5;" class="p-3"> <div class="row"> <div class="col-md-2"> <ul class="list-unstyled"> About <li><a href="https://waset.org/page/support">About Us</a></li> <li><a href="https://waset.org/page/support#legal-information">Legal</a></li> <li><a target="_blank" rel="nofollow" href="https://publications.waset.org/static/files/WASET-16th-foundational-anniversary.pdf">WASET celebrates its 16th foundational 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The Effect of Environmental, Social, and Governance (ESG) Ratings on Financial Performance: Evidence from MENA Countries