Measuring the Long-Term Economic Impact of ESG Investing in Egypt: A Quantitative Study on Sustainable Finance and Financial Performance

Rezk, Walaa Magdy

doi:10.21608/caf.2025.455694

Measuring the Long-Term Economic Impact of ESG Investing in Egypt: A Quantitative Study on Sustainable Finance and Financial Performance

المؤلف

Walaa Magdy Rezk

Obour Higher Institute for Management , Computers, and Information Systems , Egypt.

10.21608/caf.2025.455694

المستخلص

This study investigates the long-term economic impact of Environmental, Social, and Governance (ESG) investing in the Egyptian economy. Drawing on sustainable finance theory and stakeholder theory, the research develops a conceptual model linking ESG investment practices to long-term financial performance. Using a quantitative approach, data was collected from publicly listed firms on the Egyptian Exchange (EGX30) over a five-year period (2018–2023). Multiple regression analysis was employed to assess the relationship between ESG scores and financial indicators such as Return on Assets (ROA), Return on Equity (ROE), and market value. The findings indicate a statistically significant positive correlation between higher ESG scores and improved long-term financial performance. Additionally, institutional support and investor awareness were found to moderate this relationship. This study contributes to both academic literature and practical applications by offering empirical evidence specific to an emerging market context. Recommendations are provided for policymakers, regulators, and financial institutions seeking to promote ESG integration within national development strategies

الكلمات الرئيسية