Environmental, Social and Governance Performance Disclosure and Market Value: Evidence from Jordan

Our article seeks to investigate the impact of ESG disclosure in its three dimensions, both collectively and individually, on the market value of Jordanian-listed companies from 2012 to 2019. Using a sample of 173 companies listed in ASE, 1,384 observations were collected. The findings indicate that environmental and social disclosure maximize companies’ market value, and the ESG disclosure collectively has positively affected the market value. At the same time, the results do not show any important role in governance. This indicates that companies pay close attention to various stakeholders, particularly external stakeholders, and wish to increase trust and transparency by disclosing their ESG performance. As a result, companies’ confidence in the capital markets is reinforced, and improved disclosure practices positively affect market value. This study adds an empirical contribution to the literature by investigating the influence of sustainability reporting on companies’ market value in the context of emerging economic countries.