AJAG Article

Abstract

The study aims to investigate the effect of sustainability disclosure on the financial performance of selected brewery firms in Africa. The focus is to examine the influence of Governance Disclosure (G_DSCO), Social Disclosure (S_DSCO), and Environmental Disclosure (E_DSCO) on Return on Assets (ROA) and Tobin Q of brewery firms in Africa respectively. Firm Size (FSZA) was included as a control variable to explore its moderating effect. Using regression analysis across multiple regions and models, the study finds that Governance Disclosure positively impacts ROA, particularly in Southern African firms, while Social Disclosure significantly enhances Tobin Q in Eastern African firms. However, Environmental Disclosure shows minimal influence on financial performance across the regions. The study concludes that the relationship between sustainability disclosures and financial performance is context-dependent, varying across regions and firm characteristics. The study’s recommendations include enhancing governance and social disclosures to improve performance and preparing firms for evolving environmental regulations.

Sustainability Disclosure and Financial Performance, 2026, Vol. 4, No. 1, pp. 9-22. PDF