Abstract:
ABSTRACT
The relevance of sustainability disclosure, as far as its effect on financial
performance is concerned, has not really been accentuated in literature. Thus,
this study assessed the effect of sustainability disclosures on financial
performance of firms listed on the Ghana Stock Exchange. Using the criterion
sampling technique, 28 firms were sampled for the study. The explanatory
design was employed, and descriptive statistical tools, such as frequency,
percentage, mean and standard deviation; and inferential statistics, such as the
Pearson product-moment correlation and regression were used for the
analyses. Results revealed that the extent of sustainability disclosure practices
among listed firms was between (0%) and (40%). Also, it was found that
economic performance disclosure had a statistically significant positive effect
on financial performance. Further, social performance disclosure was found to
have a statistically significant negative effect on financial performance.
Furthermore, both environmental performance disclosure and overall
sustainability disclosure practices showed statistically significant positive
effects on financial performance. It was then concluded that many listed firms
in Ghana do not really have full appreciation of sustainability disclosure
indicators documented by the GlR yet. In line with this, Management of firms
listed on the Ghana Stock Exchange should encourage key employees to pay
attention to overall sustainability disclosure practices, and report all
information related economic, social and environmental performance, as
stakeholders’ access to these pieces of information positively influences the
overall financial performance of the firms
