The Impact of Environmental and Financial Disclosure on the Market Value of Companies Listed on the U.S. Stock Exchange

Abstract : This study aims to examine the effect of environmental and financial disclosure on enhancing the market value of companies listed on the U.S. Stock Exchange. The study adopted a descriptive-analytical approach using quantitative measurement methods. The sample included a group of American companies from various sectors during recent years, focusing on those that issued certified environmental and financial disclosure reports for the fiscal periods 2021, 2022, and 2023. The variables were measured based on environmental disclosure indicators, namely (climate disclosure, water disclosure, and forest disclosure), in addition to the financial variable represented by total assets. The market value was measured using the companies’ market capitalization as of December 31 of each fiscal year. Correlation and regression models were used to test the relationships among the variables and to interpret their significance levels using the SPSS statistical software. The results revealed that climate disclosure had the most significant and positive effect on increasing companies’ market value, reflecting investors’ growing awareness of the importance of climate change in sustaining performance. In contrast, water disclosure showed no significant effect, while forest disclosure had a negative impact. Meanwhile, financial disclosure (assets) proved to play a pivotal role in enhancing market value. Based on these findings, the study recommends strengthening climate disclosure, as it represents the key driver of investor confidence and the enhancement of companies’ value in global financial markets.