Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

What is it about?

• Generally, anti-corruption disclosure has a negative effect on profitability but it is only disclosures on corruption responses that significantly drive profitability down. • There is a negative and significant effect of anti-corruption disclosure on financial stability which is driven by disclosures on corruption analysis and corruption training and communication. • There is the convergence of profitability and financial stability among extractive firms, which suggest that best practices are imitated by low performing firms from the high performers. • The study calls for corporate leaders (the corporate boards, C-suite executives and others), investors, multilateral organisations, governments and civil society in Africa and beyond to contribute further to mitigating corruption in the extractive industry of Africa.

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