Includes a title page in Arabic

Thesis (M.Sc.) Master Egypt - Japan University of Science and Technology (E - JUST) - School of International Business - Accounting and Information Systems Department 2024

Includes bibliographical references

In an era of increasing environmental and social awareness , sustainability reporting is becoming a global trend that is regarded as an essential tool for organizations to demonstrate their commitment to sustainability , manage risks , and respond to stakeholder expectations This study aims to examine the relationship between firm's environmental , social and governance (ESG) performance and its financial performance in the Middle East and North Africa (MENA) region In addition , this study investigates the moderating role of firm size and the mediating role of financial risk on the ESG performance - firm financial performance relationship The study relied on data panel drawn from Thomson Reuters Eikon database to analyze the abovementioned relationships on the countries in the MENA region during the period from 2013 to 2022. Using OLS regression models , based on a sample of 522 firm-year observations of non-financial firms in the MENA region , the findings showed that ESG performance has a positive and significant effect on firm financial performance measured using an accounting-based measure (ROA) supporting the stakeholder's theory Additionally , firm size is a relevant moderator for the association between sustainability performance and financial performance Moreover , the results revealed a competitive partial mediation of financial risk where there is a significant indirect effect , but there is also a significant direct effect between ESG and financial performance indicating that firms must pay attention and consider the possibility of bankruptcy before commencing any sustainable initiatives as it will in turn might affect its financial performance Additional path analysis and robustness check were performed to support the main analysis Overall , the research results are of great interest as understanding how ESG practices affect financial performance could provide valuable insights for firms , investors , and policymakers seeking to optimize both sustainability efforts and financial outcomes This study contributes to the existing non-financial reporting literature using data retrieved from Thomson Reuters database as well as examining in the MENA region context

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(FIBH) Faculty of International Business and Humanities (AIS) Accounting Information System