Blockchain Adoption and Accounting Transparency in Africa

This study investigates the relationship between blockchain adoption and accounting disclosure quality among listed firms in Africa, with particular emphasis on institutional context and internal governance mechanisms. Motivated by persistent concerns over accounting opacity and weak enforcement in many African capital markets, the study conceptualises blockchain not merely as a technological innovation but as a governance-enhancing infrastructure capable of improving reporting credibility. Drawing on a cross-sectional sample of listed firms across selected African countries over the period 2016–2024, the analysis employs a composite accounting disclosure quality index and firm-level blockchain adoption indicators. To address self-selection bias inherent in voluntary technology adoption, the study applies propensity score matching combined with multivariate regression techniques.

The empirical results provide robust evidence that blockchain adoption is positively associated with higher accounting disclosure quality. Importantly, this relationship remains statistically and economically significant after matching adopters with comparable non-adopters. Further analysis reveals that the transparency-enhancing effect of blockchain adoption is significantly stronger in weaker institutional environments, supporting the view that blockchain functions as a substitute governance mechanism where formal regulatory enforcement is limited. Complementary case study evidence illustrates that these effects operate primarily through improved internal controls, enhanced auditability, and more consistent reporting practices.

The study contributes to the accounting and governance literature by providing the first large-sample firm-level evidence from Africa on blockchain adoption and disclosure quality, advancing methodological rigor through matching-based inference, and offering policy-relevant insights for regulators, firms, and auditors seeking to strengthen financial reporting transparency in emerging markets.