Effect of Social Accounting Disclosures on Financial Performance of Quoted Consumer and Industrial Goods Firms in Sub-Saharan Africa: A Country Specific Static Panel Analysis
Effect of Social Accounting Disclosures on Financial Performance of Quoted Consumer and Industrial Goods Firms in Sub-Saharan Africa: A Country Specific Static Panel Analysis

Summary/Abstract: This study used the ex-post facto research design in the identification of factors linked with social accounting disclosures and financial performance of listed consumer and industrial goods companies in sub-Saharan Africa. The countries include Nigeria, South Africa, Kenya and Botswana. The financial performance metrics employed were return on equity and return on asset while the social accounting disclosures metrics were community projects, waste management, training and educational and occupational health and safety disclosures. Importantly, the static panel regression was used to empirically test the data obtained from 2012–2022. Findings indicated that community projects disclosure has a negative and insignificant effect on ROA of consumer and industrial goods firms in Nigeria. Botswana and Kenya revealed a positive and insignificant effect and a significant positive influence in South Africa. Waste management disclosure has insignificant effect on return on equity of studied firms in Nigeria and Botswana. There is a significant influence for waste management disclosure on consumer and industrial good firms in Kenya and South Africa. Occupational health and safety disclosure has a significant positive influence on the return on assets of quoted consumer and industrial goods firms in Nigeria, Botswana, and South Africa, while an insignificant influence is established in Kenya. It was also concluded that training and educational disclosure substantially impact on ROE in Nigeria, South Africa, and Kenya, with an insignificant influence for firms in Botswana. It recommends that regulations mandating social accounting disclosures are promulgated for corporate firms. Additionally, consumer and industrial goods firms in Nigeria, Kenya, South Africa and Botswana are to priorities social accounting disclosure and put a beam-light on waste management disclosure; this will boost their corporate image, increase performance and reduce industrial conflict.

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