Corporate governance and Environmental Social Governance Performance of Listed Non-financial Firms in Africa. the Moderating Influence of Leverage

Philipina Ampomah (), Nugraha Nugraha, Maya Sari and Denny Andriana
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Philipina Ampomah: Cape Coast Technical University
Nugraha Nugraha: Universitas Pendidikan Indonesia
Maya Sari: Universitas Pendidikan Indonesia
Denny Andriana: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 185-191 from Springer

Abstract: Abstract This study examines the moderating effect of leverage on the relationship between corporate governance characteristics and Environmental, Social, and Governance (ESG) performance in African non-financial firms. This study used a dataset of 238 publicly traded non-financial companies in 13 African nations from 2012 to 2022. The analysis employs a dynamic panel model and the Generalized Method of Moments (GMM) to examine the data. The results indicate that having a diverse gender composition on the board, a larger board size, and independent board members positively impacts ESG performance. Additionally, increasing leverage strengthens the connection between these governance traits and ESG outcomes, suggesting that companies with higher leverage can effectively utilize their governance structures to achieve better ESG performance. This research contributes to the existing literature by highlighting African markets’ unique economic, social, and regulatory conditions. These findings have practical implications for policymakers, investors, and company managers in Africa, emphasizing the importance of strong corporate governance and strategic financial planning in promoting sustainability.

Keywords: Corporate Governance; ESG Performance; Leverage; Africa; Non-financial firms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-817-2_23

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DOI: 10.2991/978-94-6463-817-2_23

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