The Moderating Role of ESG Disclosure on the Relationship between Herding Behaviour and Market Capitalization in the Egyptian Stock Market | ||
| التجارة والتمويل | ||
| Volume 44, Issue 3, September 2024, Pages 89-113 PDF (1.64 M) | ||
| DOI: 10.21608/caf.2024.379105 | ||
| Authors | ||
| yasmeen said1; Zeinab Amin Elsayed Khayal2; Heba Mohamed Srour3 | ||
| 1Assistant Professor of Finance Finance Department Faculty of Business Administration and International Trade Misr International University, Egypt | ||
| 2Assistant Professor of Business Administration Management Department Faculty of Business Administration and International Trade Misr International University, Egypt | ||
| 3Associate Professor Business Department faculty of commerce Tanta University, Egypt | ||
| Abstract | ||
| This paper examines the moderating effect of environmental, social, and governance (ESG) disclosure on the relationship between herd behavior and market capitalization. The financial data of 22 companies listed in the S&P/EGX ESG index from 2018 to 2023 is analyzed using panel data analysis in the study. The empirical results reveal a statistically significant positive association between market capitalization and herding behavior. Furthermore, the results indicate that implementing mandatory ESG disclosure strengthens the association between market capitalization and herding behavior. The analysis demonstrates that companies with superior ESG performance impact firm market capitalization, ultimately leading to higher stock valuations. This emphasizes the growing importance of ESG factors in formulating investment decisions, reinforcing market transparency, and influencing overall market dynamics in Egypt | ||
| Keywords | ||
| Herding Behavior; ESG; Market Capitalization; Egypt | ||
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