Does Corporate Sustainability Reporting Affect Financial Performance in the Palestinian Environment?

Authors

Mohamad Anwar Al-Kabeya, Zahran Mohammad Ali Daraghma, Naser Abdelkarim Mufrej

 

Abstract

This paper investigated the influence of corporate sustainability reports on the financial performance of Palestinian companies listed on the Palestine Exchange (PEX). A sample of 2 companies, including 13 from the industrial sector and 9 from the service sector, was analyzed using panel data covering the period from 2018 to 2022. The findings of this study revealed that the aggregate sustainability disclosure index had no significant impact on the financial performance of the listed corporations on the PEX. Moreover, environmental sustainability disclosure significantly and positively influences the performance, social sustainability disclosure significantly and negatively impacts the performance, and economic sustainability disclosure insignificantly impact the performance. These findings contribute to a deeper understanding of the relationship between sustainability reporting and financial outcomes in the context of Palestinian companies listed on the PEX. It is recommended that future studies explore the relationship between corporate social responsibility, environmental disclosure, corporate governance, and firm valuation.

DOI: 10.51958/AAUJBL2025V9I1P3