Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana

Kong, Yusheng; Donkor, Mary; Musah, Mohammed Borhandden; Nkyi, Joseph Akwasi; Ampong, George Oppong Appiagyei

doi:10.3390/su15054211

Cited by 7 publications

(5 citation statements)

References 67 publications

(77 reference statements)

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“…This meant that innovation investment intensity (Inv) served as a bridge between resource abundance (Fyd) and enterprise transformation and upgrading (Tfp). This outcome coincided with that of Kong et al [87].…”

Section: Resultssupporting

confidence: 92%

The Effect of Corporate Resource Abundance on the Transformation and Upgrading of Manufacturing Enterprises from the Perspective of Whole Process Innovation

Tang

et al. 2023

Sustainability

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Exploiting a comparative advantage through resource endowment is a way to promote the transformation and upgrading of enterprises and high-quality economic development. Based on resource-based theory, this paper takes the listed companies of China’s manufacturing industry as a sample and classifies them into leading, potential, catching-up, and exiting enterprises according to the abundance of financial and human resources. In terms of the research perspective, this paper adopts resource abundance as the starting point to explore its impact on enterprise transformation and upgrading and incorporates technological innovation into the framework to investigate its transmission mechanism. The results indicate that the resource abundance of enterprises directly promotes the transformation and upgrading of enterprises. Notably, the mechanism identification test suggests the following. (1) From the perspective of innovation investment, innovation investment intensity is an important channel for manufacturing companies to transform and upgrade. (2) From the perspective of innovation direction, higher levels of resources allow leading enterprises to accelerate transformation and upgrading through product and process innovation. In contrast, catching-up enterprises tend to foster product innovation rather than process innovation to transform and update, while potential enterprises are likely to foster process innovation to transform and update rather than product innovation. On the other hand, the path of transformation and upgrading through product or process innovation is obstructed for the exiting enterprises. (3) From the perspective of innovation output, all but the exiting enterprises can be transformed and upgraded by increasing their innovation output. Overall, considering the impact of corporate innovation behavior, this research offers new insights into the relationship between resource abundance and transformation and upgrading, and it provides inspiration for promoting transformation and upgrading in Chinese manufacturing enterprises.

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Section: Resultssupporting

confidence: 92%

The Effect of Corporate Resource Abundance on the Transformation and Upgrading of Manufacturing Enterprises from the Perspective of Whole Process Innovation

Tang

et al. 2023

Sustainability

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“…Based on the estimates in the table, all the variables possessed an I(1) integration order. This finding supports the studies of Sun et al (2021), Kong et al (2023), andWu et al (2023). The variables' order of integration suggests a potential co-integration amidst them; hence, the co-integration tests depicted in Table 5 were conducted to examine the series' co-integration attributes.…”

Section: Unit Root and Co-integration Analysissupporting

confidence: 77%

Does industrialization promote the emission mitigation agenda of East Africa? a pathway toward environmental sustainability

Yu,

Zhao,

Musah

et al. 2024

Front. Environ. Sci.

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Africa’s economy continues to be characterized by increasing environmental pollution caused by anthropogenic activities. Despite the implications of environmental pollution in the continent, little attention has been paid to it, although almost all its countries are signatories to the Paris Agreement. One macroeconomic variable that has proven to be a major driver of environmental pollution in the region is industrialization. However, despite the numerous explorations on the connection between industrialization and environmental degradation, limited studies have examined the linkage amidst the series in East Africa. This study was, therefore, conducted to help fill that gap. In accomplishing this goal, econometric techniques that control cross-sectional correlations, heterogeneity, and endogeneity, among others, were employed for the analysis. From the results, the panel under consideration was heterogeneous and cross sectionally correlated. In addition, the studied series were first differenced stationary and co-integrated in the long run. The elasticities of the regressors were explored via the cross sectionally augmented autoregressive distributed lag (CS-ARDL) estimator, the cross sectionally augmented distributed lag (CS-DL) estimator, and the augmented mean group (AMG) estimator. According to the results, industrialization led to a reduction in the environmental quality in the region through high CO2 emissions. In addition, financial development, foreign direct investments, urbanization, and energy consumption were not environmentally friendly in the bloc. On the causal linkages amid the series, bidirectional causalities between industrialization and CO2 emissions, energy consumption and CO2 emissions, and foreign direct investments and CO2 emissions were detected. Finally, one-way causal movements from financial development and urbanization to CO2 emissions were unraveled. These findings are useful in helping stimulate the emission mitigation agenda of the region. Based on the findings, the study recommended, among others, that national policies that can promote energy conservation at the industrial level and can convert the industrial structure of the region to a low carbon-intensive one should be formulated.

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“…Firms that incur debt may deduct interest charges from taxable revenue, lowering their tax burden. This boosts the firm's worth by increasing the cash flow available for investment [21]. However, debt financing comes with fees and dangers.…”

Section: Theoretical Justification-trade-off Theorymentioning

confidence: 99%

The Moderating Role of Ownership Concentration on Financing Decisions and Firm’s Sustainability: Evidence from China

Wen,

Agyemang,

Alessa

et al. 2023

Sustainability

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We examined the impact of financing decisions on a firm’s sustainability in China as it aspires to achieve carbon neutrality. To proxy firms’ sustainability performance, we proposed an index for environmental, social, and governance (ESG) performance. The financing decision was proxied by debt funding and equity funding. Using secondary data from China Stock Market Accounting Data from 2016 to 2022, we utilize the fixed effect and fully modified ordinary least squares estimators for the empirical analysis. The analysis indicated a favorable link between debt funding and ESG performance. We uncovered an inconsistent association between equity funding and ESG performance. Moreover, ownership concentration revealed a significant role in moderating the impact of debt financing and ESG performance in China. The findings affirm that firms should rely on debt funding rather than equity funding to enhance their ESG performance. Hence, policymakers should enact laws allowing easy access to debt funding for companies to ensure higher ESG performance. This, in the long term, will contribute to the Chinese dream of carbon neutrality.

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Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana

Cited by 7 publications

References 67 publications

The Effect of Corporate Resource Abundance on the Transformation and Upgrading of Manufacturing Enterprises from the Perspective of Whole Process Innovation

The Effect of Corporate Resource Abundance on the Transformation and Upgrading of Manufacturing Enterprises from the Perspective of Whole Process Innovation

Does industrialization promote the emission mitigation agenda of East Africa? a pathway toward environmental sustainability

The Moderating Role of Ownership Concentration on Financing Decisions and Firm’s Sustainability: Evidence from China

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