Green reporting and firm performance of listed manufacturing firms in Sub-Saharan Africa (SSA): Does chief executive officer (CEO) cultural origin matter?

Justina Adams, George Tackie and Anthony Adu-Asare Idun

Journal of Accounting in Emerging Economies, 2025, vol. 15, issue 2, 517-542

Abstract: Purpose - The purpose of this study is to investigate the relationship between green reporting and firm performance and how this relationship varies across various chief executive officers' (CEOs) cultural origins. Design/methodology/approach - The period of the study spans from 2015 to 2021, and the study includes a total of 158 listed manufacturing firms, selected from 14 Anglophone countries in Sub-Saharan Africa. The study employs the instrumental variable-generalized method of moments (IV-GMM) technique to address potential endogeneity issues. Findings - The results indicate that green reporting positively influences firm performance (ROA and ROE), in line with legitimacy, stakeholder and signaling theories. Nonetheless, green reporting has a more positive influence on ROA and ROE when CEOs come from cultures characterized by high power distance, high uncertainty avoidance and high masculinity. However, firms with CEOs from cultures with low individualism, low long-term orientation and low indulgence experience a more pronounced positive impact of green reporting on ROA and ROE. Practical implications - The findings from the study suggest that governments and policymakers in Sub-Saharan Africa should promote sustainability, cultural diversity and the use of green reporting to enhance both environmental and financial performance for economic and environmental sustainability. Originality/value - This study is one of the first studies to investigate the relationship between green reporting and firm performance and how this relationship varies across various CEOs' cultural origins.

Keywords: CEO cultural origin; Green reporting; Firm performance; Manufacturing firms; Sub-Saharan Africa (SSA) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jaeepp:jaee-02-2024-0063

DOI: 10.1108/JAEE-02-2024-0063

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