Panel Granger Causality of Green Accounting and Financial Performance of Listed Companies in Sub-Saharan African Countries.
Publication Date: 31/12/2025
Author(s): Sunday Amos Adeusi (Ph.D.), Racheal Modupe Gbadamosi, Ademola Tosin Olofintuyi.
Volume/Issue: Volume 8, Issue 5 (2025)
Page No: 62-97
Journal: African Journal of Accounting and Financial Research (AJAFR)
Abstract:
Amid growing global emphasis on environmental sustainability and responsible corporate firms targeting whether environmental accounting initiatives could result in resource conservation, emissions disclosure, and ecological friendly in applying compliance tools and act as strategic drivers of financial outcomes. Hence, this study investigates how Green accounting which measuring and reporting the environmental impacts of Green House Gas (GHG) emissions, energy usage, waste, and water management on financial performance of listed companies in Sub-Saharan African countries. The study employs panel data regression and the Dumitrescu-Hurlin panel Granger causality to test the bidirectional and unidirectional causal relationships between proxies of green accounting and financial performance. The results reveal that GHG emissions, energy usage, and waste management have negative and statistically insignificant impact on financial performance, while water management has negative and statistically significant influence on returns on equity (ROE). On the other side, the result Dumitrescu-Hurlin panel Granger causality to test the bidirectional and unidirectional causal across sectors fail due to evidence of absent of balanced panel data. These findings provide empirical support for integrating environmental performance into financial strategies and offer crucial insights for policymakers, investors, and corporate managers in advancing sustainable business practices in the region.
Keywords:
Dynamic Relationship, Dumitrescu-Hurlin Panel Granger Causality, Ecological Friendly, Green Accounting.
