Does Sustainability Auditing Lead to Enhanced Corporate Governance, Environmental Performance, and Financial Outcomes? Empirical Evidence From High‐Impact Industries

Bonsu, MO ORCID: 0000-0001-5517-4903, Wang, Y ORCID: 0000-0002-9389-8504, Eghe‐Ikhurhe, G and Hyslop, K (2025) Does Sustainability Auditing Lead to Enhanced Corporate Governance, Environmental Performance, and Financial Outcomes? Empirical Evidence From High‐Impact Industries. Business Strategy and the Environment. ISSN 0964-4733

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Abstract

This study employs hierarchical regression modelling on a survey of 550 firms from Nigeria and Ghana to examine the impact of sustainability auditing on corporate governance, environmental performance, and financial outcomes of high‐impact industries. Our findings reveal that internal sustainability auditing significantly enhances environmental performance, regulatory compliance, corporate governance transparency, and accountability. Additionally, external sustainability auditing positively influences firms' financial performance and long‐term value. Notably, we identify cross‐country variations: Internal sustainability auditing has a stronger effect on environmental performance and corporate governance in Ghana, whereas external audits exhibit a greater impact on financial performance and long‐term firm value in Nigeria. Moreover, industry‐specific insights indicate that internal audits are particularly influential in improving environmental performance within the mining sector while they play a critical role in strengthening corporate governance within the oil and gas industry. The study underscores the importance of sustainability auditing in corporate governance frameworks for promoting environmental and financial sustainability in high‐impact industries, providing valuable insights for policymakers and corporate leaders.

Item Type:	Article
Uncontrolled Keywords:	0502 Environmental Science and Management; 1501 Accounting, Auditing and Accountability; 1503 Business and Management; Business & Management; 3501 Accounting, auditing and accountability; 3502 Banking, finance and investment; 3507 Strategy, management and organisational behaviour
Subjects:	H Social Sciences > HF Commerce > HF5001 Business
Divisions:	Liverpool Business School
Publisher:	Wiley
Date of acceptance:	9 December 2025
Date of first compliant Open Access:	8 January 2026
Date Deposited:	08 Jan 2026 15:53
Last Modified:	08 Jan 2026 15:53
DOI or ID number:	10.1002/bse.70503
URI:	https://researchonline.ljmu.ac.uk/id/eprint/27833

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