Title:
DETERMINANTS OF ENVIRONMENTAL PERFORMANCE OF LISTED COMPANIES IN SUB SARAH AFRICAN COUNTRIES: EMPIRICAL IMPLICATIONS

Authors:
ADEUSI, Sunday Amos, ADETULA, Omotola Oluwafunmise, MAMIDU, Aruna Ishola and ENIOLA Jacob Omoniyi, Nigeria

Abstract:
Global awareness of sustainability of nature resources is crucial to sustainable development and growing pressure from international stakeholders to adopt environmentally responsible practices. Thus companies must ensure to integrate environmental performance into their operations with view of minimizing negative externality in their environment. The study examines determinants of Environmental Performance of Listed Companies in Sub Sarah African Countries. The study deploys Arellano–Bond estimator (difference GMM) which is designed to estimate linear dynamic panel-data models with a lagged dependent variable and potentially endogenous regressors. The results show that lagged environmental social and governance index, returns on asset, Leverage, return on capital employed, gross margin growth, board independence and returns of equity were all significant as a determinant of environmental performance. While growth rate and firm size were insignificant in the determination of environmental performance of Listed Companies in Sub Sarah African Countries. The findings reveal that profitability measures influence ESG differently. Firms with strong equity returns and efficient capital use are more proactive in sustainability, while asset-driven efficiency may discourage it. Leverage plays a surprisingly positive role, as indebted firms strengthen ESG to maintain financial credibility. Governance factors further highlight that smaller boards with higher independence foster stronger environmental accountability.