Corporate Finance, Industrial Performance and Environment in Africa: Lessons for Policy

Ekundayo Mesagan, Titilope Adewuyi () and Olugbenga Olaoye ()
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Titilope Adewuyi: University of Lagos, Lagos, Nigeria.
Olugbenga Olaoye: Bells University of Technology, Nigeria

No 22/026, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study employs the Pool Mean Group framework to investigate the impact of corporate finance and industrial performance on pollution in Africa between 1990 and 2020. The study, which focuses on 36 African nations, found that corporate financing insignificantly enhances environmental quality in the short run, while it significantly worsens the environment in the long run. Also, the result shows that industrial performance exerts a negative but insignificant impact on pollution in both the short- and long-run periods. Lastly, the interaction term between corporate finance and industrial performance has a negative and significant impact on pollution in both periods. With this striking result, the study recommends that efforts should be made to promote the growth of environmentally sound production plants in the continent through the removal of credit facilitation bottlenecks.

Keywords: Corporate Finance; Industrial Performance; Pollution; Africa (search for similar items in EconPapers)
JEL-codes: G3 L25 O14 Q53 (search for similar items in EconPapers)
Pages: 26
Date: 2022-01
New Economics Papers: this item is included in nep-afr, nep-cfn, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Forthcoming: Scientific African

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http://publications.excas.org/RePEc/exs/exs-wpaper ... onment-in-Africa.pdf Revised version, 2022 (application/pdf)

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Working Paper: Corporate Finance, Industrial Performance and Environment in Africa: Lessons for Policy (2022)
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