The Effect of Sustainability Reporting on the Firm’s Value

Application of Panel Autoregressive Distributed Lag (ARDL) Approach

Bibliographic Data

ID21737584
AuthorsJohn MacCarthy (0000-0001-9017-1185, University of Professional Studies, corresponding author)
Year2026
Volume27
Issue2
Pages285-324
Publication date2026-04-03
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of African Business (JOURNAL)
Journal identifiersISSN: 1522-8916 • E-ISSN: 1522-9076
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/15228916.2025.2466347
OpenAlexW4408095977
LanguageEN
References cited82

This study examines the effect of sustainability reporting on firm value, using panel ARDL to distinguish between short-run and long-run effects. The study extracted secondary data from 15 listed firms on the Ghana Stock Exchange from 2003 to 2022. The panel ARDL model helped to clarify research gaps on the effect of sustainability in terms of short and long-run effects. The findings show that the economic, social, and environmental performance disclosures have a positive and significant effect on the firm’s value in the long run, while economic and environmental performance disclosures have an insignificant effect on the firm’s value in the short run, with the exception of social performance disclosure. This suggests that sustainability reporting takes time to manifest in firm value. Again, the results indicate that the model restores the short-run relationship to the dynamic long-term equilibrium with an adjustment speed of 51.3%. These findings help managers identify which aspects of sustainability reporting impact firm value immediately and in the long run, guiding resource allocation and stakeholder communication. The study recommends that regulators should make the sustainability frameworks in Ghana mandatory and encourage firms to comply fully with the Global Reporting Initiative to enhance the quality of sustainability reporting

Autoregressive model · Distributed lag · Econometrics · Economics · Lag · Macroeconomics · Monetary economics · Panel data · Statistics · Sustainability · Time lag · Computer Science · Corporate Social Responsibility Reporting · Energy, Environment, Economic Growth · Environmental Sustainability in Business · Mathematics

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