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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Main Author: Nevine Sobhy Abdel Megeid
Format: Article
Language:English
Published: SpringerOpen 2024-02-01
Series:Future Business Journal
Subjects:
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.
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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
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AT nevinesobhyabdelmegeid impactofclimateriskdisclosureonfinancialperformancefinancialreportingandriskmanagementevidencefromegypt