Artikel
The impact of environmental sustainability disclosure on stock return of Saudi listed firms: The moderating role of financial constraints
Environmental sustainability represents nowadays a significant factor for business sector. Firms carry out many initiatives to develop environmental practices. Investors increasingly consider environmental discloser by firms and integrate this disclosure into the investment decision-making process. Using a database of Saudi listed firms, this study adds to the literature by examining the relationship between the environmental sustainability disclosure and stock return and whether this relationship is moderated by the financial constraints. We find that the environmental sustainability disclosure has significant and negative impact on stock return, indicating that investors do not consider environmental disclosure when valuing the stocks. Furthermore, our results propose that the negative impact of environmental disclosure on stock return is more evident in firms with financial constraints. This study provides managerial implications for regulatory authorities, firms and investors. The environmental practices can be value relevant. However, these practices need to be efficiently integrated into stock valuation.
- Language
-
Englisch
- Bibliographic citation
-
Journal: International Journal of Financial Studies ; ISSN: 2227-7072 ; Volume: 9 ; Year: 2021 ; Issue: 1 ; Pages: 1-17 ; Basel: MDPI
- Classification
-
Wirtschaft
Portfolio Choice; Investment Decisions
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Subject
-
environmental sustainability disclosure
financial constraints
Saudi Arabia
stock return
- Event
-
Geistige Schöpfung
- (who)
-
Alsahlawi, Abdulaziz Mohammed
Chebbi, Kaouther
Ammer, Mohammed Abdullah
- Event
-
Veröffentlichung
- (who)
-
MDPI
- (where)
-
Basel
- (when)
-
2021
- DOI
-
doi:10.3390/ijfs9010004
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Alsahlawi, Abdulaziz Mohammed
- Chebbi, Kaouther
- Ammer, Mohammed Abdullah
- MDPI
Time of origin
- 2021
Other Objects (12)
Intellectual capital disclosure of Hungarian and Czech listed firms
Disclosure about corporate social responsibility through ISO 26000 implementation made by Saudi listed companies
Empirically investigating the disclosure of nonfinancial information: A content study on corporations listed in the Saudi capital market
The ESG disclosure and the financial performance of Norwegian listed firms
Factors affecting corporate social responsibilities disclosure of listed companies in Vietnam
International financial reporting standards (IFRS) disclosure and performance of Nigeria listed companies
Influence of selected company characteristics on voluntary disclosure of intangible assets in listed companies
An examination of strategy disclosure in the annual reports of South African listed companies
A study of the determinants of environmental disclosure quality: evidence from French listed companies
The quality of disclosure under IAS 38 in financial statements of entities listed on PSE
Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria
Factors influencing environment disclosure quality and the moderating role of corporate governance
Intellectual capital disclosure of Hungarian and Czech listed firms
Disclosure about corporate social responsibility through ISO 26000 implementation made by Saudi listed companies
Empirically investigating the disclosure of nonfinancial information: A content study on corporations listed in the Saudi capital market
The ESG disclosure and the financial performance of Norwegian listed firms
Factors affecting corporate social responsibilities disclosure of listed companies in Vietnam
International financial reporting standards (IFRS) disclosure and performance of Nigeria listed companies
Influence of selected company characteristics on voluntary disclosure of intangible assets in listed companies
An examination of strategy disclosure in the annual reports of South African listed companies
A study of the determinants of environmental disclosure quality: evidence from French listed companies
The quality of disclosure under IAS 38 in financial statements of entities listed on PSE
Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria
Factors influencing environment disclosure quality and the moderating role of corporate governance
Intellectual capital disclosure of Hungarian and Czech listed firms
Disclosure about corporate social responsibility through ISO 26000 implementation made by Saudi listed companies
Empirically investigating the disclosure of nonfinancial information: A content study on corporations listed in the Saudi capital market
The ESG disclosure and the financial performance of Norwegian listed firms
Factors affecting corporate social responsibilities disclosure of listed companies in Vietnam
International financial reporting standards (IFRS) disclosure and performance of Nigeria listed companies
Influence of selected company characteristics on voluntary disclosure of intangible assets in listed companies
An examination of strategy disclosure in the annual reports of South African listed companies
A study of the determinants of environmental disclosure quality: evidence from French listed companies
The quality of disclosure under IAS 38 in financial statements of entities listed on PSE
Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria