How Financial Inclusion Moderates the Curvilinear Nexus between Tangible Investment and Sustainable Firm Growth: New Evidence from the Middle East and North Africa Region

Wafa Khémiri, Eman Fathi Attia () and Ahmed Chafai
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Wafa Khémiri: Department of Finance, École Supérieure de Commerce de Tunis, Campus Universitaire Manouba, University of Manouba, LARIMRAF LR21ES29, Manouba 2010, Tunisia
Eman Fathi Attia: Accounting Department, College of Business and Administration, University of Business and Technology, Jeddah 21448, Saudi Arabia
Ahmed Chafai: Department of Economics, École Supérieure de Commerce de Tunis, Campus Universitaire Manouba, University of Manouba, ThÉMA LR16ES10, Manouba 2010, Tunisia

Sustainability, 2024, vol. 16, issue 6, 1-27

Abstract: The aim of this study was to examine the curvilinear relationship between tangible investment and sustainable firm growth in the MENA region, as well as the moderating role of financial inclusion on this connection. To achieve this, we selected a sample of 465 firms over the period 2007–2020. Employing a system GMM model for the empirical analysis, the findings reveal that there is a curvilinear (inverted U-shaped) nexus between tangible investment and sustainable firm growth. Moreover, this study employs a moderating effect model to demonstrate that financial inclusion can enhance sustainable firm growth. The system GMM model further indicates that financial inclusion moderates the curvilinear relationship between tangible investment and sustainable firm growth. This study offers valuable insights for strategic firm planning and policy development, highlighting the role of financial inclusion in promoting firm sustainability.

Keywords: financial inclusion; investment; sustainable firm growth; SGMM; MENA region (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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