Determinants of Sustainability Disclosures in Moroccan Listed Companies: Insights from an Emerging MENA Market

This study assesses the evolution of sustainability disclosure, identifies its determinants, and evaluates industry-level variations in sustainability reporting in the MENA region, with a particular focus on Morocco. A descriptive analysis utilizing 118 indicators to measure the Sustainability Disclosure Index (SDI) was conducted to examine trends and developments. This was followed by a random-effects linear and Feasible Generalized Least Squares (FGLS) panel regression to investigate the relationship between the SDI and its determinants. The findings reveal a significant improvement in the SDI over time, positively influenced by factors such as firm age, firm size, and indexation in the MASI ESG. However, despite mandatory ESG reporting in Morocco, the overall sustainability disclosure index remains mediocre, signaling the need for firms to enhance their practices. This study, while limited to listed firms due to the unavailability of data for non-listed entities, offers valuable insights for managers on the factors shaping the SDI and lays a foundation for further research in the region. To the best of our knowledge, this is the first empirical investigation in Morocco to analyze the determinants of sustainability reporting disclosure across all industries for the period 2014–2023.