The impact of corporate environmental reporting on the financial performance of listed manufacturing firms in Ghana (Csr-24-2036)

Abstract

A growing number of businesses are facing criticism for engaging in environmentally damaging practices. Despite advancements in technology and operational efficiency, the environmental challenges confronting businesses have become increasingly urgent. As disclosure requirements have expanded, the importance of reporting standards for environmental sustainability has risen. This study explores the impact of corporate environmental reporting on the financial performance of listed manufacturing firms in Ghana. It analyses 10 years (2012–2021) of annual reports from 20 publicly traded manufacturing companies, using panel regression and content analysis to assess the data. The findings reveal that environmental sustainability disclosure has a positive and significant effect on return on equity (ROE) and net profit margin. Furthermore, disclosures related to health, safety, and community development initiatives have a strong positive impact on ROE. The study recommends that policymakers develop guidelines, especially for environmental reporting, to aid firms in preparing their annual reports. It also suggests that corporate accountants expand their expertise and collaborate with environmental and ecological experts. This research offers valuable insights for policymakers and provides a foundation for further investigation into the effects of corporate environmental reporting on the performance of listed firms in sub-Saharan Africa.