The Effect of Environmental and Social Corporate Governance on the Financial Performance with Special Focus on the Egyptian Private Sector Companies within Egx30

Abstract

Egyptian private sector companies are face increasing pressure on two fronts-requiring greater transparency and disclosure and the need to apply good Environmental and Social Corporate Governance (ESCG) practices. The main objective of this research paper is to examine the relation between Environmental and Social Corporate Governance practices and financial performance (FP) of Egyptian private sector companies included in the official share index of the Egyptian stock change. EGX 30 index the index includes 30 largest firms where liquidity and action. The EGX 30 is weighted at market value and adjusted by free float. The adjusted market value of the listed company is the number of its shares multiplied by the closing price of that company multiplied by the percentage of shares offered freely. This study provides important evidence on the impact of ESCG performance on Corporate Financial Performance (CFP).“This is particularly important given this sustainability and ESCG performance to identify key business activities of listed companies in Egypt. The study concluded that there is a strong correlation between social governance with its four dimensions (board responsibilities, disclosure, and transparency and investor rights protection) and the financial performance of Egyptian private sector companies within EGX30.