Exploring the moderation role of corporate sustainability disclosure in the relationship between board-level committees and firm performance: The perspective of Sub-Saharan Africa

Abstract This study explores the moderating role of corporate sustainability disclosure (ESG) in the relationship between board-level committees and firm performance (FP) in Sub-Saharan Africa (SSA). While prior research has extensively examined board governance in developed markets, the unique institutional context of SSA—characterized by weak regulatory frameworks and evolving sustainability pressures—remains underexplored. Grounded in agency theory, stakeholder theory, and the resource-based view (RBV), this research investigates how the effectiveness of compensation (CCE), audit (ACE), nomination (NCE), and sustainability (SCE) committees influences FP, and whether ESG disclosure strengthens or weakens these relationships.Using manually collected data from 100 non-financial firms across 10 SSA countries (2016–2023), the study employs pooled OLS and GEE regression models. Results reveal that all four committee types significantly enhance FP, supporting hypotheses H1a–H4a. However, contrary to expectations (H1b–H4b), ESG disclosure consistently weakens these positive relationships, suggesting potential trade-offs between symbolic ESG compliance and governance efficacy. For instance, ESG-linked compensation (CCE × ESG: β = −0.121, p < 0.001) and sustainability oversight (SCE × ESG: β = −0.216, p < 0.001) exhibit negative moderation, highlighting risks of greenwashing and resource misallocation in weak institutional settings.The findings contribute to corporate governance literature by (1) empirically validating committee effectiveness in SSA, (2) challenging the assumption that ESG universally enhances governance outcomes, and (3) underscoring the need for context-sensitive reforms. Practical implications include calls for robust ESG assurance mechanisms and balanced committee mandates to align stakeholder and shareholder interests. Policymakers and firms are urged to prioritize substantive ESG integration over disclosure-driven practices to sustain long-term value creation in emerging markets.