The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt
Abstract Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies and to investigate its determinants. As unfavorable climatic circumstances create sy...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-02-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-024-00309-5 |
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| author | Nevine Sobhy Abdel Megeid |
| author_facet | Nevine Sobhy Abdel Megeid |
| author_sort | Nevine Sobhy Abdel Megeid |
| collection | DOAJ |
| description | Abstract Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies and to investigate its determinants. As unfavorable climatic circumstances create systemic risk for businesses throughout the whole global economy, this research examine how the disclosure of climate change risks affects the financial performance, financial reporting, and risk management. Few studies analyze how climate-related risk affects the financial performance of publicly traded companies in Egypt. This research applies regression models using both quantitative and qualitative methodologies. The information was gleaned from the 2019 through 2022 financial statements of 25 publicly traded companies. According to statistical analysis, there is a significant positive association between the financial performance, financial reporting, and risk management of industrial organizations and the disclosure of climate change. The findings show that the financial markets require precise, thorough, and high-quality information about the effects of climate change. This encompasses the threats and chances posed by increasing temperatures, climate-related legislation, and new technology in our rapidly evolving global environment. |
| format | Article |
| id | doaj-art-6ded5fb6a9f44c56b2e22cfdf4c84275 |
| institution | OA Journals |
| issn | 2314-7202 2314-7210 |
| language | English |
| publishDate | 2024-02-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-6ded5fb6a9f44c56b2e22cfdf4c842752025-08-20T01:51:28ZengSpringerOpenFuture Business Journal2314-72022314-72102024-02-0110112410.1186/s43093-024-00309-5The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from EgyptNevine Sobhy Abdel Megeid0College of Management and Technology, Arab Academy for Science, Technology and Maritime TransportAbstract Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies and to investigate its determinants. As unfavorable climatic circumstances create systemic risk for businesses throughout the whole global economy, this research examine how the disclosure of climate change risks affects the financial performance, financial reporting, and risk management. Few studies analyze how climate-related risk affects the financial performance of publicly traded companies in Egypt. This research applies regression models using both quantitative and qualitative methodologies. The information was gleaned from the 2019 through 2022 financial statements of 25 publicly traded companies. According to statistical analysis, there is a significant positive association between the financial performance, financial reporting, and risk management of industrial organizations and the disclosure of climate change. The findings show that the financial markets require precise, thorough, and high-quality information about the effects of climate change. This encompasses the threats and chances posed by increasing temperatures, climate-related legislation, and new technology in our rapidly evolving global environment.https://doi.org/10.1186/s43093-024-00309-5Climate risk disclosureFinancial performanceFinancial reportingRisk managementEgypt |
| spellingShingle | Nevine Sobhy Abdel Megeid The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt Future Business Journal Climate risk disclosure Financial performance Financial reporting Risk management Egypt |
| title | The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt |
| title_full | The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt |
| title_fullStr | The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt |
| title_full_unstemmed | The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt |
| title_short | The impact of climate risk disclosure on financial performance, financial reporting and risk management: evidence from Egypt |
| title_sort | impact of climate risk disclosure on financial performance financial reporting and risk management evidence from egypt |
| topic | Climate risk disclosure Financial performance Financial reporting Risk management Egypt |
| url | https://doi.org/10.1186/s43093-024-00309-5 |
| work_keys_str_mv | AT nevinesobhyabdelmegeid theimpactofclimateriskdisclosureonfinancialperformancefinancialreportingandriskmanagementevidencefromegypt AT nevinesobhyabdelmegeid impactofclimateriskdisclosureonfinancialperformancefinancialreportingandriskmanagementevidencefromegypt |