Assessing the Role of Sustainability Disclosures and Credit Availability in Shaping Fiscal and Monetary Policies in Sub-Saharan Africa

Abstract

This dissertation sought to enhance understanding of the impact of sustainability reporting and private sector credit on fiscal and monetary policy within selected sub-Saharan countries. This comprehensive study evaluates the effects of monetary and fiscal policies and sustainability reporting on the financial performance of Ghana's listed commercial banks and how those effects influence the country's economy. The study used a contemporaneous, deductive, explanatory, and case study technique, utilising primary sources (questionnaires) and secondary sources (document analysis) in a cross-sectional inquiry. The data was statistically analysed using the SPSS software, utilising thematic, descriptive, and inferential statistical analyses. Using the correlation matrix to analyse inferential statistics data shows that government spending, taxes, inflation rate, and ROA and ROE have a statistically significant positive correlation with earnings quality. The findings of this research are also expected to contribute to the existing literature on sustainability reporting, firm performance, and brand management.

The study further suggests that Central Banks should provide clear and transparent forward guidance regarding their future interest rate decisions. Commercial banks can better anticipate rate movements and adjust their strategies, reducing uncertainty and potential negative impacts. Management operational efficiency statistically and adversely correlates with ROA and ROE at a 95% confidence. On the other hand, GDP growth and liquidity measurements had a statistically negligible negative correlation with ROA and ROE. A positive and strong correlation exists between the adjusted R square of fiscal policy instruments and the internal control factors of 42.1%, 38.3%, 87.0%, and 68.1%, respectively.