English Abstract
Abstract:
Purpose- ESG has been widely adapted by firms and countries due to the demand of shareholders for more conspiracy on environmental, social, and governance (ESG) issues. This study aims to investigate the relationship between ESG and the performance of fins in the MENA region. The study also examined the effect of the financial crisis and that of COVID-19 on the relationship between ESG and firms' performance. Moreover, the study checked the effect of the models on ESG in the long-teem
Methodology- This study examines 200 fires listed on the stock exchanges of MENA countries over a period of 15 years (2006-2021). The study specifies the years (2007-2008) as financial crisis years and the years (2020-2021) as the COVID- 19 ora. The independent variables are ROA, ROE, and Tobin's Q. This study uses firm-specific control variables in the models.
Findings The focus of the study is to find the relationship between sustainability and performance in non-financial firms. In the main regression, the study found a negative significant effect of ESG on film prefinance in the ROA model. However, it found a positive significant effect on fin performance in Tobin's Q model Size has a negative significant effect on firm parka Mance in Tobin's Q model. Economic growth had a positive significant effect on the ROA model. Leverage had a negative significant effect on firm performance in the ROA model and a positive significant effect on Tobin's Q model. Market-to-book ratio had a negative significant effect on the ROE model.
In the crisis period, ESG had a negative significant effect on fin procurance is Tobin's Q model. Leverage had a negative significant effect on firm performance in the ROA model and a positive effect on Tobin's Q model. ESG had a negative significant effect on firm performance in ROA model and positive effect on Tobin's
Q model. Economic growth had a positive effect on firm performance in the ROA model. The crisis had a positive effect on fin performance in the ROA model. The Interaction variable which is the ESG in the crisis period found a negative effect on firm performance.
In the COVID-19 period, ESG had a negative significant effect on firm performance in the ROA model and positive significant effect in Tobin's Q model Sue had a negative significant effect on firm performance in Tobin's Q model. Leverage had a negative significant effect on firm performance in the ROA mod and a plosive significant effect in Tobin's Q model. Economic growth had a positive significant effect on fire performance in the BOA model. The market-to-book ratio had a negative significant effect on firm performance in the ROE model. COVID had a negative significant effect on firm performance in the ROA model. The interaction variable which is the ESG in the COVID period found a positive significant effect on firm performance in Tobin's Q model.
Value-The study fills a gap in the literature by studying the effect of sustainability in non-financial MENA firms. It also contributes to the trendy topic of ESG which is of interest to various stakeholders.
Keywords- ESG, Corporate social responsibility, performance, MENA countries.
