Blockholder Suppression of Environmental Transparency in Sub‐Saharan Africa: The Role of Board Independence and Institutional Quality
Business Strategy and the Environment
Published online on August 05, 2026
Abstract
["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study investigates the impact of block ownership on environmental transparency among 277 publicly listed nonfinancial companies in sub‐Saharan Africa from 2014 to 2023. Using a dynamic panel design and the System Generalised Methods of Moments estimator, we demonstrate that concentrated ownership substantially diminishes environmental transparency, which is consistent with entrenchment motives. However, board independence reduces the blockholder suppression effect by approximately 19%–30%, depending on the institutional context, especially in countries with weak rules of law, and mitigates this suppression, suggesting a compensatory function for internal governance. Furthermore, national institutional quality, notably control of corruption and adherence to the rule of law, positively influences environmental transparency. The findings are confined to the environmental sector; the mechanism is theoretically domain‐specific, consistent with the argument that verifiable ecological data carries greater material regulatory and litigation risks than discretionary social narratives, highlighting the strategic selectivity that characterises corporate transparency in fragile institutional contexts. These findings provide essential guidance for regulators seeking to improve climate‐related reporting in emerging markets and call into question the universal assumptions that dominate global sustainability frameworks.\n"]