Scholarlink

<p>Funding&#xa0;strategies play an essential role in the performance of companies. Nevertheless, such strategies have focused on the financial facets of firms and neglected non-financial performance, particularly in Sub-Saharan Africa (SSA), where limited access to finance, weak institutional frameworks, and varying ESG adoption levels persist. Recently, institutional ownership has emerged as pivotal in influencing firms to pay attention to their ESG performance. However, the impact of institutional ownership on firms’ funding strategies towards ESG performance is still underexplored in the emerging economies in the SSA region. This inspires this study to examine the influence of funding strategy and institutional ownership on ESG performance among listed firms in the SSA, providing insights into sustainable finance and ESG practices in the region. This study uses a panel data set of 126 Sub-Saharan non-financial companies listed during 2010–2022. Based on this study’s multiple observations per unit over time and estimation of Cointegrating relationships among non-stationary variables, we employed the Fixed Effect (FE) and Fully Modified Ordinary Least Squares (FMOLS) estimators to test the direct and moderating effects among the variables. The results show that Equity Funding Strategy positively influences ESG performance, while institutional ownership significantly moderates the influence of Equity Funding Strategy and ESG performance. Also, the findings of Mutual Funds and Financial Institutions’ ownership significantly accentuate the funding strategy’s effect on ESG performance. The study proposes policies that sustain equity funding strategies with strong institutional ownership while developing tailored ESG reporting frameworks to foster sustainable finance to boost ESG practices in SSA.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Funding strategy, institutional ownership and economic, social and governance (ESG) performance

  • 期刊论文

  • 发表日期：

    2026年3月24日

查看全文
  • Peter Kwarteng,
  • Kingsley Opoku Appiah,
  • Robertson Amoah

摘要

Funding strategies play an essential role in the performance of companies. Nevertheless, such strategies have focused on the financial facets of firms and neglected non-financial performance, particularly in Sub-Saharan Africa (SSA), where limited access to finance, weak institutional frameworks, and varying ESG adoption levels persist. Recently, institutional ownership has emerged as pivotal in influencing firms to pay attention to their ESG performance. However, the impact of institutional ownership on firms’ funding strategies towards ESG performance is still underexplored in the emerging economies in the SSA region. This inspires this study to examine the influence of funding strategy and institutional ownership on ESG performance among listed firms in the SSA, providing insights into sustainable finance and ESG practices in the region. This study uses a panel data set of 126 Sub-Saharan non-financial companies listed during 2010–2022. Based on this study’s multiple observations per unit over time and estimation of Cointegrating relationships among non-stationary variables, we employed the Fixed Effect (FE) and Fully Modified Ordinary Least Squares (FMOLS) estimators to test the direct and moderating effects among the variables. The results show that Equity Funding Strategy positively influences ESG performance, while institutional ownership significantly moderates the influence of Equity Funding Strategy and ESG performance. Also, the findings of Mutual Funds and Financial Institutions’ ownership significantly accentuate the funding strategy’s effect on ESG performance. The study proposes policies that sustain equity funding strategies with strong institutional ownership while developing tailored ESG reporting frameworks to foster sustainable finance to boost ESG practices in SSA.