Content Details | NUML Online Research Repository

Title Financing alternatives and GRI Sustainability: The Moderating Role of stagflation cycles, financial constraints and governance mechanisms

Author(s) Asima Saleem

Abstract ABSTRACT The study focused on identifying macroeconomic and microeconomic dimensions of corporate sustainable performance. The primary objective was to examine the effect of comprehensive financing alternatives on both financial performance and sustainable performance of nonfinancial firms of SCO member states: Pakistan, China, India, and Iran. The study also evaluated the moderating influence of stagflation cycles, financial constraints, and corporate governance mechanisms on the interconnection between financing alternatives and a firm’s financial and sustainable performance. The comprehensive financing alternatives include internal, debt, equity, shadow banking, and supply chain financing. Sustainable performance is measured through GRI 201-1, economic performance approach. The sustainable growth rate is incorporated for robustness purposes. The study applied mixed panel regression models, the Lagrange Multiplier test and the Hausman model specification test to analyze the data sampled 1166 non-finance industrial firms listed on the corresponding Stock Exchanges of SCO member states for 14 years (2007-2020). The empirical findings proved the significant influence of financing alternatives on corporate financial and sustainable performance. Additionally, the study proved the significant moderating influence of stagflation cycles, financial constraints, and corporate governance mechanism index on the association between financing alternatives and corporate financial and sustainable performance, controlled by firm size, asset tangibility, and total asset turnover. The study fostered the economic goals of SCO states by utilizing the optimal capital structure and right governance mechanisms that minimize the impact of stagflation cycles and financial constraints, and resultantly influence financial performance and sustainable performance. The empirical relationships are supported through capital structure theories: pecking-order theory, trade-off theory, agency theory, and market timing effect. This study supported corporations, financial regulators, financial managers, stakeholders, investors, and financial advisors in capital generation decisions based on alternative financing sources and their contribution to achieving corporate sustainability among different industrial firms in SCO countries. Keywords: Capital structure; Corporate governance; Developing countries; GRI Sustainability

Type Thesis/Dissertation PhD

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2024-11-13

Subject Finance

Publisher

Contributor(s)

Format

Identifier

Source

Relation

Coverage

Rights