Author(s): Bahaa Sobhi Awwad
The purpose of this study is to identify the extent to which industrial and service companies listed on the Palestine Stock Exchange are committed to environmental disclosure during the period 2010-2019 and its role in enhancing their market value. An analytical descriptive approach was followed and the necessary data was collected from reports and financial statements of those companies. The study sample consisted of 22 industrial and service companies due to direct repercussions of their activities on the environment. The results of the study indicate a decrease in the general average of the environmental disclosure index for those companies; it amounted to (48%) which means that most of the companies under consideration do not commit to voluntary disclosure of environmental information related to their operations. The results also show a strong, positive, however, not statistically significant correlation between environmental disclosure and market value. In light of these results, the study recommends the need for companies to adopt various policies that help reduce the negative effects of their activities towards the environment and raise awareness of the importance of environmental matters in enhancing their market reputation which, in turn, affects performance and raises their market value. The researchers also recommend that these companies should develop mandatory mechanisms for disclosing environmental information from the competent authorities that all Palestinian companies abide by.