ESG Assurance and Dividends: Evidence From 18 Countries in Africa

Samuel Karanja Kogi and June Cao

Business Strategy and the Environment, 2026, vol. 35, issue 5, 6745-6768

Abstract: This study examines the impact of environmental, social and governance (ESG) assurance on a firm's dividend payout policies within the unique African context. Using a staggered difference‐in‐differences (DiD) model, this study examines how voluntary third‐party assurance of ESG reports influences firms' dividend payout policies compared to those without assurance. This study utilises a panel data set comprising a sample of 738 listed African firms across 18 African countries, yielding 8645 firm‐year observations. Based on the stakeholder and agency theories, we find that after implementing ESG assurance, assured firms increase their dividend payout policies compared to non‐assured firms. The mining and metals industry sectors lead with the highest ESG assurance. ESG‐assured firms consistently report high dividend payouts compared to non‐assured firms. Furthermore, our results suggest that following ESG assurance, firms increase dividend payout driven by reduced information asymmetry. This result builds upon existing studies, primarily focusing on the impact of ESG on firm decision‐making and performance. Accounting professionals, researchers, policymakers, business executives and investors would find this study insightful in understanding how ESG assurance impacts firm dividend policies.

Date: 2026
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