ESG and Financial Performance. The Effects of Audit Quality and National Culture in the Nigerian and Kenyan Context

Doctoral Thesis / Dissertation , 2022 , 143 Pages , Grade: 3.9

Business economics - Business Management, Corporate Governance

This research is motivated by the need to show whether environmental, social, and governance performance (ESG) is highly linked to the African companies’ performances, and national culture. Besides, this study examines the impacts of audit quality and the national culture on the relationship between financial performance and environmental, social, and governance (ESG) criteria.

The introduction of ESG practices has started lately in sub-Saharan African countries, but its implementation has been easier as the African context prones social factors that facilitate its development. Although several studies have explored the nexus between ESG, audit quality and firm financial performance, the outcomes of research on the financial performance-ESG’s relationship are contradicting and further research is needed.

These areas include (1) the mediating role of audit quality in the relationship between corporate governance and firm performance; (2) the moderated mediating role of national culture in the relationship between ESG and financial performance through audit quality, (3) the impact of each ESG characteristics such as environment, social, governance scores and audit firm size on firm performance. Thus, the aims of the study are to examine (1) the impact of environment, social, governance criteria on firm financial performance; (2) the relationship environment, social, governance criteria and audit quality; (3) the effect of audit quality on firm financial performance; (4) the mediating role of audit quality in the relationship ESG and firm financial performance; and (5) the ESG performance of companies deviating between firms from different countries, the last key objective is to fill the research gap by examining the moderated mediating role of the four cultural dimensions of Hofstede –power distance, uncertainty avoidance, individualism, and masculinity- on the impact of ESG on firm financial performance through audit quality.

Inhaltsverzeichnis (Table of Contents)

• ESG and Financial Performance: The Effects of Audit Quality and National Culture in the Nigerian and Kenyan context
• Chapter 1: Introduction
• 1.1 Background to the Study
• 1.2 Problem Statement
• 1.3 Research Objectives
• 1.4 Research Questions
• 1.5 Significance of the Study
• 1.6 Scope of the Study
• 1.7 Structure of the Thesis
• Chapter 2: Literature Review
• 2.1 Theoretical Framework
• 2.2 Empirical Literature Review
• Chapter 3: Methodology
• 3.1 Research Design
• 3.2 Sample and Data Collection
• 3.3 Measurement of Variables
• 3.4 Statistical Analysis
• Chapter 4: Results and Discussion
• 4.1 Descriptive Statistics
• 4.2 Correlation Analysis
• 4.3 Regression Analysis
• 4.4 Discussion of Findings
• Chapter 5: Conclusion
• 5.1 Summary of Findings
• 5.2 Contributions to Knowledge
• 5.3 Policy Recommendations
• 5.4 Limitations of the Study
• 5.5 Suggestions for Future Research

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The thesis investigates the relationship between environmental, social, and governance (ESG) factors and financial performance in the Nigerian and Kenyan contexts. The study examines the impact of audit quality and national culture on this relationship.

• The impact of ESG factors on financial performance
• The role of audit quality in moderating the relationship between ESG and financial performance
• The influence of national culture on the relationship between ESG, audit quality, and financial performance
• The specific context of ESG implementation in developing economies, such as Nigeria and Kenya
• The implications of findings for corporate governance and sustainability practices

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 introduces the research background, problem statement, research objectives, research questions, significance of the study, scope of the study, and the structure of the thesis. Chapter 2 provides a comprehensive review of the theoretical and empirical literature related to ESG, audit quality, national culture, and financial performance, outlining the conceptual framework for the study. Chapter 3 details the methodology employed, including the research design, data collection and sampling techniques, measurement of variables, and the statistical analysis used. Chapter 4 presents the results and discussion of the data analysis, including descriptive statistics, correlation analysis, and regression analysis. The chapter interprets the findings and analyzes the relationship between the variables of interest in the context of the research questions.

Schlüsselwörter (Keywords)

ESG, financial performance, audit quality, national culture, Nigeria, Kenya, corporate governance, sustainability, emerging markets, developing economies.

• College: Dongbei University of Finance and Economics
• Grade: 3.9
• Author: Ursule Yvanna Otek Ntsama (Author)
• Publication Year: 2022
• Pages: 143
• Catalog Number: V1334026
• ISBN (PDF): 9783346838827
• ISBN (Book): 9783346838834
• Language: English
• Tags: financial, performance, effects, audit, quality, national, culture, nigerian, kenyan, context