TOWARDS A GREEN TOBIN’S Q HOW ESG FACTORS AFFECT FIRM TOBIN’S Q VALUE; THE CASE OF EGYPT: AN EMPIRICAL STUDY

Abstract

The current study aimed to find the impact of environmental, societal, and governmental factors on the firm’s performance. Additionally, the study tried to build knowledge about the importance of the mentioned factors as one of the trends towards the value of the green Topin’s Q. Using the data of 70 Egyptian firms listed on the Egyptian Stock Exchange during the period from 2017 to 2022, the study results showed a significant impact of all the tested factors on the firms’ Tobin’q. Based on the study findings, it is suggested that firms included in the Egyptian Sustainability Index should prioritize various initiatives aimed at empowering women and youth, donations, establishment of reward systems, greater attention to healthcare, involve individuals with special needs, support artistic initiatives and civic participation towards education and scholarships, community relief efforts, establish sustainability committees, and adopt more environmentally friendly manufacturing protocols specifically related to packaging and waste disposal.