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

نوع المستند : المقالة الأصلية

المؤلفون

1 Accounting Assistant Professor, October University for Modern Sciences and Arts

2 Professor Doctor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt

3 Assistant Professor, Accounting Department, Faculty of Commerce Cairo University, Cairo, Egypt

المستخلص

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.

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