Governance Disclosure and Firm Performance of Listed Non-Financial Firms in Selected African Countries
Sustainability reporting has emerged as a critical instrument for enhancing transparency, accountability, and stakeholder confidence in corporate reporting, yet its performance implications remain inconsistent among African non-financial firms. This study examined the effect of governance disclosure index on firm performance of listed non-financial firms in Nigeria, Kenya, and South Africa. Using a sample of 1,602 firm-years observations from 128 firms, governance disclosure is measured through CEO shares disclosure, executive pay disclosure, director remuneration disclosure, board meetings disclosure, audit committee disclosure, and audit remuneration disclosure. Firm performance is proxied by Return on Assets (ROA), Return on Capital Employed (ROCE), Earnings per Share (EPS), and Tobin’s Q. Panel regression techniques guided by the Hausman specification test were employed. The empirical results indicate that the governance disclosure index exerts a significant joint influence on firm performance across all measures examined. Specifically, significant effects were observed for ROA and Tobin’s Q/ These findings suggest that governance disclosure is an important determinant of both accounting-based and market-based measures of firm performance. The findings suggest that governance disclosure serves as a critical channel through which firms can enhance both internal efficiency and external market perception. The study concluded that governance disclosure is a value-relevant mechanism that enhances transparency, reduces information asymmetry, and strengthens stakeholder confidence, thereby contributing to improved firm performance. Based on the findings, it was recommended that firms should strengthen the quality and depth of governance disclosure rather than treating it as a mere regulatory requirement. Keywords: Governance disclosure, Sustainability reporting, Firm performance, Return…
Keywords: Governance disclosure, Sustainability reporting, Firm performance, Return on Assets, Return on Capital Employed, Earnings per Share, Tobin’s Q
Citation: Lawal, A.M., Jabar, A.A. & Akinadewo, I.S. (2026). Governance Disclosure and Firm Performance of Listed Non-Financial Firms in Selected African Countries. International Journal of Innovative Research in Accounting and Sustainability, 11(2), 1-25.