Evidence of the impact of corporate governance on ESG disclosure in sub-Saharan Africa: the moderating role of ownership structure

This study explores the influence of corporate governance mechanisms on Environmental, Social and Governance (ESG) disclosure within the emerging economy of sub-Saharan Africa. The specific focus is on assessing the role of institutional ownership as a potential moderating factor. Employing quantitative data from nine countries in sub-Saharan Africa, the research employs a two-step dynamic panel-data Generalised Method of Moments approach for estimations. The results underline the positive impact of corporate governance mechanisms on disclosing ESG. Surprisingly, when introducing institutional ownership as a moderating variable, the study does not uncover substantial evidence that the percentage of institutional ownership significantly moderates the relationship between corporate governance mechanisms and ESG disclosure. This research contributes to the existing body of knowledge on corporate governance and ESG disclosure, specifically within the context of sub-Saharan Africa. The results suggest that, despite the positive impact of corporate governance mechanisms, the role of institutional ownership in moderating this relationship is not as pronounced. This valuable information contributes to our understanding of ESG practices in sub-Saharan African countries, emphasising the significance of a well-composed board concerning substantial improvements in ESG disclosure among listed companies in the region.