Financial and Accounting Analysis of the S&P ESG Sustainable Investment Index in the Saudi Stock Market For the period 2014-2023

Abstract

The aim of the research is to explore the financial and accounting impact of sustainable investment practices on the performance of companies, through the comparative financial and accounting analysis of the S&P ESG Sustainable Investment Index with the Saudi TASI General Market Index, in addition to analyzing the behavior and trend of the two indicators, to monitor the reality of the sustainable investment approach in the Saudi environment, as well as evaluating the relationship between sustainable investment practices (ESG) and generating excess returns (outperforming the general market index), for the period (2014-2023), and it was concluded that companies that adopt sustainable investment practices achieve better financial performance in the long term, even in light of short-term economic fluctuations, which highlights the importance of sustainability as a factor influencing the performance of companies in the long term, which emphasizes the importance of integrating environmental, social and governance factors into investment strategies.