In this research endeavor, we investigate the potential influence exerted by ESG performance on the market capitalization of non-financial corporations included within the UK FTSE All-Share Index during the eleven-year period spanning 2010 to 2021. Integrating insights from Resource-Based View and Stakeholder Theory, this research extends the literature by considering the moderating effect of governance on the ESG–market capitalization association. This study analyzes a comprehensive dataset of UK firms, employing robust econometric techniques to substantiate its conclusions. The results demonstrate a robust positive association between the overall ESG pillars and market capitalization. Environmental, social, and governance performances independently contribute to an increased market value. The analysis reveals that firms with superior internal governance structures, characterized by the presence of independent board members, board size, an independent audit committee, and the implementation of a split CEO–chair structure, experience a magnified positive impact from ESG disclosures on market capitalization. Effective governance mechanisms enhance the credibility and effectiveness of ESG initiatives, aligning them with stakeholder expectations and regulatory standards. This alignment fosters trust and cooperation, driving better financial performance and increasing market value. This research adds its voice to the increasingly compelling body of evidence that underscores the financial advantages associated with ESG integration and highlights the critical role of internal governance in amplifying these benefits. The findings have significant implications for policymakers, investors, and corporate managers. They advocate for the strategic incorporation of ESG criteria into corporate governance frameworks to achieve sustainable financial success.

Corporate sustainability has emerged as a critical imperative for firms navigating volatile markets and ecological constraints, yet the mechanisms linking organizational practices to sustainability outcomes remain underexplored, particularly in developing economies. Drawing on the resource-based view and dynamic capabilities theory, this paper examines how transformational leadership and knowledge sharing synergistically enhance innovation capability, which in turn fosters environmental dynamism and corporate sustainability performance. Using a structured questionnaire within a cross-sectional design to gather data from 140 Moroccan SMEs, data were collected via an online questionnaire from 140 Moroccan SME owners and managers, with hypotheses tested using partial least squares structural equation modeling (PLS-SEM). The results show that knowledge sharing, and transformational leadership significantly strengthen innovation capability. Innovation capability further drives environmental dynamism, which positively impacts sustainability performance. These findings advance theory by integrating knowledge-based, leadership, and dynamic capability perspectives into a novel pathway for achieving sustainability goals. The study underscores the necessity for SMEs in developing nations to cultivate leadership that inspires knowledge exchange and adaptive innovation, enabling resilience amid ecological and market shifts. By highlighting these internal drivers, the research offers actionable insights for SMEs and policymakers seeking to align business innovation strategies with sustainability objectives and pro-environmental transformation in line with the UN Sustainable Development Goals (SDGs).

This study investigates the influence of Environmental, Social, and Governance (ESG) factors on the financial performance of publicly traded U.S. companies between 2013 and 2023. Using a balanced panel dataset of 386 S&P 500 firms and 4246 firm-year observations, the analysis applies panel data regression models with fixed effects to evaluate the association between ESG scores and two financial indicators: Return on Assets (ROA) and Tobin’s Q. The results reveal a modest association with ROA, but a significantly stronger link with Tobin’s Q, suggesting that while ESG practices may not substantially boost short-term profitability, they are positively perceived by investors and contribute to long-term market value. These findings are consistent with stakeholder and signalling theories, indicating that strong ESG performance reflects effective management and lower investment risk. The limited impact on ROA may stem from the initial costs of implementing ESG initiatives. This study highlights practical implications for corporate leaders and policy-makers, advocating for ESG integration as a long-term value driver. Future research should explore alternative ESG rating systems and consider sectoral dynamics and broader market influences.

This study examines the strategic implications of environmental activities on firm performance, specifically focusing on contribution per dollar sale and operational cost efficiency within US companies. Using a comprehensive dataset of 17,735 firm‐year observations from 2008 to 2023, we find that firms engaging in green revenue generation do not pass the associated costs on to consumers through higher prices, leading to a reduction in contribution per dollar sale. However, these firms enhance their operational cost efficiency to offset this impact and maintain profitability, underscoring the operational efficiencies gained from sustainability initiatives. To address potential endogeneity, we employ two‐stage least squares and difference‐in‐differences approaches. Our results indicate that the relationship between green revenue generation, cost efficiency and profitability remains robust regardless of regulatory pressures, indicating that sustainability efforts are embedded within broader strategic and operational practices. We also find that firms adjust marketing expenditures to absorb costs, illustrating a purposeful alignment of sustainability goals with competitive positioning. This study contributes to the strategic management literature by highlighting the role of environmental activities in shaping firm performance and operational strategy. We offer valuable insights for businesses, policymakers and standard setters seeking to balance sustainability with financial performance.

This study investigates the influence of board gender diversity (BGD) on environmental and social disclosure (ESD) within the airline industry, an area that remains underexplored despite increasing stakeholder scrutiny. We apply automated textual analysis to annual reports of Skytrax's top global airlines from 2016 to 2022 to measure the extent of ESD and examine its association with female board representation. The results show a positive and significant relationship between BGD and ESD, with a critical mass of at least four female directors required to drive meaningful improvements in disclosure practices. These findings extend the predictions of gender socialization theory (GST) and critical mass theory (CMT) and offer practical implications for policymakers and airline managers, including the adoption of diversity quotas and leadership development initiatives to enhance corporate transparency and accountability.

This study investigates how the Egyptian stock market responded to the 2024 devaluation of the Egyptian Pound (EGP) and evaluates whether price adjustments reflect semi-strong form market efficiency. Using daily data for EGX30 firms, we estimate abnormal returns around the devaluation announcement and document largely insignificant market-wide reactions, indicating weak evidence of semi-strong efficiency. However, notable cross-firm heterogeneity emerges export-oriented and foreign-revenue-generating firms showed greater resilience, while companies dependent on imported inputs experienced sharper declines. These findings highlight how differences in currency exposure shape firms’ sensitivity to exchange rate shocks in emerging markets with recent dual-rate dynamics. From a practical perspective, the results emphasise the importance of transparent policy communication during major currency adjustments and underline the need for investors to account for firms’ FX risk profiles when constructing portfolios in devaluation-prone environments. The findings also offer insights for regulators seeking to strengthen disclosure practices and improve informational efficiency in the Egyptian capital market.