The Impact of Environmental Disclosure on Market Performance: An Empirical Study of Jordanian Listed Industrial Companies

Abstract

The world is currently grappling with the daunting environmental issue of global warming and climate change, which pose a significant threat to the future of our planet from various perspectives. Increased public awareness and concern over the detrimental effects of these problems have resulted in the creation of new environmental regulations. One important aspect of corporate governance that contributes to addressing this challenge is environmental accounting. By embracing the potential of environmental accounting, businesses can work towards achieving sustainable growth and development. The study aimed to investigate the impact of environmental disclosure on market performance in Jordanian industrial companies listed on the Amman Stock Exchange. The descriptive analytical method was relied on to achieve the study's objectives. The data was collected through annual reports in addition to the financial statements of a group of industrial companies listed on the Amman Stock Exchange, which met the requirements of environmental disclosure, which were (43) industrial companies during the period (2017-2021). The special data in the study sample were analyzed using the statistical analysis software E-views. The arithmetic means standard deviation, and each of the upper and lower values was extracted in addition to using multiple linear regression analysis. The study concluded that there is a statistically significant effect of the environmental disclosure in both the market value and the stock turnover rate, in addition to Tobin's Q ratio in the industrial companies surveyed. According to the findings, industrial companies in Jordan should be encouraged to become more interested in and open about their environmental activities. This is because being open about these activities helps them get more investments, start their financing and investment operations, increase their market value, and increase their investment market share.