This study investigates the impact of energy intensity and CO₂ emissions on economic growth in Gulf Cooperation Council (GCC) countries, aiming to understand the interplay between energy consumption, environmental sustainability, and economic performance. We analyze data from 1990 to 2023 across six GCC countries. The study employs the fixed effects model, random effects model, and pooled regression model to examine the relationships between energy intensity, CO₂ emissions, and GDP growth, controlling for factors such as foreign direct investment, trade openness, population, unemployment, and urbanization. Our findings reveal a significant negative impact of energy intensity on economic growth, and an increase in energy intensity is associated with a decrease of approximately 0.2969 units in GDP, indicating that higher energy consumption per unit of output hinders economic performance. While CO₂ emissions positively affect growth in GCC countries, a one-unit increase in CO₂ emissions is associated with an increase of approximately 0.3961 units in GDP. The study emphasizes the necessity for GCC countries to adopt sustainable energy practices to reduce energy intensity and boost economic growth. By aligning economic strategies with environmental sustainability goals, these nations can achieve long-term growth while effectively addressing the challenges of climate change. This research contributes to the ongoing discourse on sustainable development in the region and underscores the importance of harmonizing economic growth strategies with environmental objectives.

This research examines the link between environmental, social, and governance (ESG) risk ratings and board characteristics on corporate performance. Using 2023 data from 117 companies on the Saudi Stock Exchange, the study employs Ordinary Least Squares (OLS) regression and Python for data analysis. Our findings reveal a negative effect of ESG risk scores on financial performance measures, indicating that higher ESG risks hinder firm performance measured by ROE and ROIC. Furthermore, both the size and independence of the board decrease corporate performance in Saudi firms. Family-controlled ownership structures often limit the effectiveness of independent directors in enhancing performance. In Saudi firms, women’s board participation shows an insignificant impact on corporate performance, suggesting that the Tokenism Theory may apply. It is recommended that firms empower women in leadership roles and develop robust ESG risk management frameworks to mitigate risks and enhance financial performance.

Environmental, social, and governance (ESG) engagement has been identified as a strategic priority for firms. However, its impact on green innovation (GIN) remains contested. Indeed, the propensity for climate risk to shape the effectiveness of ESG-driven GIN is underexplored. This study investigates how ESG performance (ESGPerf) influences GIN and examines the moderating effect of climate physical risk within the Saudi setting over 2002–2024. Results from fixed-effects and two-stage least squares (2SLS) regressions applied to 460 firm-year observations show that ESGPerf promotes GIN, while climate risk independently stimulates innovation and dampens ESGPerf’s positive effect on GIN. These findings suggest that environmental uncertainty shifts firms’ resource allocation between long-term innovation and short-term adaptation, demonstrating that the strategic value of ESG investments is contingent on risk contexts and underscores ESG commitment as a potential strategic capability rather than mere symbolic compliance. These findings are insensitive to rigorous robustness checks, including alternative variables’ measures and estimation techniques.

This study explores how technological innovation, financial development, education, and institutional quality impact CO₂ emissions between 1995 and 2021 in Costa Rica, one of the developing nations that have found ways to balance economic development with sustainable measures. We apply the Autoregressive Distributed Lag (ARDL) model and the Error Correction Model (ECM) to analyze the short-run and long-run relationships between the variables. Time-series data are analyzed to determine the direction and magnitude of these relationships. The results indicate that financial development positively correlates with CO₂ emissions in the long run, while technological innovation reduces environmental degradation. Short-run results show that institutional quality initially worsens emissions, while financial development and education contribute to mitigating CO₂ emissions. The findings underscore the need for policy aimed at balancing financial growth and environmental responsibility. Institutional quality and technological progress are central to achieving long-run sustainability. Policymakers ought to prioritize the implementation of sustainable investment methodologies, augment institutional frameworks, and advocate for innovation-oriented environmental policies. The adoption of these measures will be crucial for the mitigation of CO₂ emissions while concurrently facilitating sustained economic advancement.

This study examines stock market reactions to female board appointments among 34 publicly listed companies in Saudi Arabia between 2021 and 2024. We employ a multi-method approach covering 36 announcements. Our primary methodology is an event study, which we complement with two distinct robustness checks: the Local Projections (LP) method to capture the evolving nature of market responses and the Quantile-on-Quantile analysis to investigate how market conditions interact with the three phases surrounding the event—the anticipation period before the appointment, the appointment event itself, and the post-appointment adjustment period. This comprehensive methodological framework allows us to capture the immediate market response to appointment announcements and the longer-term implications for firm performance while accounting for various econometric challenges inherent in financial market data. Our findings reveal a negative market reaction that gradually intensifies, becoming marginally significant by the tenth trading day. This pattern suggests that investors in the Saudi market may initially view female board appointments with skepticism, potentially reflecting uncertainty about the impact of gender diversity in a traditionally male-dominated business environment. Furthermore, the evolution from 2021 to 2024 suggests a market that is progressively developing more sophisticated frameworks for evaluating female board appointments. Rather than exhibiting a monotonic trend toward either increasingly positive or negative reactions, the market appears to be engaging in a learning process characterized by periodic reassessments. Moreover, our results indicate that while the immediate event and anticipation phases yield mixed impacts across the return distribution, the adjustment period exhibits a robust and significantly negative interaction with market returns. These findings suggest that market overreactions, particularly during bullish periods, contribute to a pronounced correction effect following female board appointments.

This study examines the impact of Environmental, Social, and Governance (ESG) Risk on foreign ownership of Saudi-listed companies, with corporate performance serving as a potential mediator. Using 2023 data from 117 listed companies on the Saudi Stock Exchange, we investigate whether ESG risk scores influence foreign investors' decisions and whether return on equity (ROE) mediates this influence. The findings suggest a high negative correlation between foreign ownership and ESG risk in a way that foreigners least desire firms with higher ESG risks. While ESG risk negatively affects ROE, its statistically non-significant mediating effect on foreign ownership exists. Also, Board size positively affects foreign ownership by reflecting the structural function of boards in welcoming outsiders. Bootstrap test of robustness confirms that the indirect effect of ROE is insignificant. The study contributes to the expanding literature on foreign investment and ESG by asserting the direct role of ESG risk on the investor's behavior.