The Power of ESG Factors in Driving Financial Growth - Insights from Palestine

The Power of ESG Factors in Driving Financial Growth - Insights from Palestine | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Power of ESG Factors in Driving Financial Growth - Insights from Palestine Naji Alslaibi, Naser Abdalkarim This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4276019/v2 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 03 Sep, 2024 Read the published version in Discover Sustainability → Version 2 posted 9 You are reading this latest preprint version Show more versions Abstract Purpose: This study examines the effects of environmental, social, and governance disclosure (ESG) components on the financial performance (FP) of firms listed on the Palestine Stock Exchange (PEX) from 2016 to 2022, focusing on the moderating role of corporate governance. Design/methodology/approach: This study used primary data from 44 PEX-listed companies. A context analysis technique was used through company websites and disclosures, the entire population (308 observations) was used for this study, and the study used STATA utilizing the required statistical analysis for this research. Findings: The study finds that environmental, social, and governance disclosures significantly influence the Return on Equity and Return on Assets. Testing for the moderating role of Corporate Governance, especially board diversity and size, shows that board diversity moderates the association between social and governance disclosure and firm performance. Board size moderates the relationship between social disclosure and firm performance. By contrast, Board Size and Diversity do not moderate the relationship between environmental disclosure and firm performance. Originality: The study contributes to the literature as the first of its kind conducted in Palestine, examining the moderating effects of board size and diversity on the association between ESG disclosure and firm performance. Environmental Social Governance ESG Moderating Variable Governance Characteristics Financial Performance Full Text Supplementary Files 1.ESGFinalVersionV.03Appendix.docx Cite Share Download PDF Status: Published Journal Publication published 03 Sep, 2024 Read the published version in Discover Sustainability → Version 2 posted Editorial decision: Accepted 20 Aug, 2024 Editor assigned by journal 19 Aug, 2024 Reviews received at journal 18 Aug, 2024 Reviews received at journal 17 Aug, 2024 Reviewers agreed at journal 15 Aug, 2024 Reviewers agreed at journal 13 Aug, 2024 Reviewers invited by journal 13 Aug, 2024 Submission checks completed at journal 13 Aug, 2024 First submitted to journal 10 Aug, 2024 You are reading this latest preprint version Show more versions Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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