Corporate sustainability disclosure and financial performance: The moderating role of supply chain visibility in Ghana’s listed manufacturing firms

Abstract

Sustainability disclosure is increasingly expected of firms in emerging economies, yet its association with financial outcomes may depend on how well firms can monitor and trace sustainability information across their supply chains. This study examines the association between economic, social and environmental disclosure and perceived financial performance among manufacturing firms listed on the Ghana Stock Exchange, and the moderating effect of supply chain visibility on these relationships. Drawing on stakeholder theory and the natural resource based view, a cross sectional survey was administered to senior managers in strategy, finance, sustainability and operations between January and March 2024. Of 150 questionnaires distributed, 120 usable responses were obtained (80 percent), and the data were analysed using partial least squares structural equation modelling (PLS SEM). First, economic disclosure has a positive effect on financial performance.  Second, social disclosure has a positive effect on financial performance. Additionally, environmental disclosure has a positive effect on financial performance. It is also found that supply chain visibility positively moderates the relationship between economic disclosure and financial performance. Furthermore, supply chain visibility positively moderates the relationship between social disclosure and financial performance. Besides, supply chain visibility positively moderates the relationship between environmental disclosure and financial performance. The findings imply that firms should be encouraged to integrate sustainability reporting with supply chain transparency systems, and future research should use longitudinal designs and objective financial indicators.