African continent is facing a considerable demonstration of financial institutions and especially bank group which are dominating the banking environment. In the absence of developed financial markets, these bank organisations are at the centre of the economic activity. They are even the main financing source for companies, States, households and represent about 80% of African continent assets. This situation is encouraged by the organisational structure of those banks (subsidiary companies, representative offices, affiliated banks and branches) which permit a better representatively at the level of the continent. This research analyses the influence of sustainable finance principles on the economical profitability of 42 banking groups implanted in African continent between 2010 and 2020. Thus, data used are extracted from annual reports and were analysed through a time cross-sectional regression corrected for any latent heteroscedasticity and serial autocorrelation. At the end, the findings of this research are plural. firstly, green credits and transparency have a non-considerable impact on economical profitability. secondly, employee shareholding and gender diversity have a negative influence on economical profitability. thirdly, corporate environmental responsibility is negatively and highly correlated to bank economic profitability. Finally, philanthropy positively and highly affects economical profitability. One can therefore conclude that the profitability of sustainable finance is mitigated in Africa.
| Published in | International Journal of Finance and Banking Research (Volume 10, Issue 1) |
| DOI | 10.11648/j.ijfbr.20241001.12 |
| Page(s) | 11-19 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Sustainable Finance, Economical Profitability, Bank Groups, Africa
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APA Style
Alim, O. (2024). Sustainable Finance and Economical Profitability in Africa. International Journal of Finance and Banking Research, 10(1), 11-19. https://doi.org/10.11648/j.ijfbr.20241001.12
ACS Style
Alim, O. Sustainable Finance and Economical Profitability in Africa. Int. J. Finance Bank. Res. 2024, 10(1), 11-19. doi: 10.11648/j.ijfbr.20241001.12
AMA Style
Alim O. Sustainable Finance and Economical Profitability in Africa. Int J Finance Bank Res. 2024;10(1):11-19. doi: 10.11648/j.ijfbr.20241001.12
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Download@article{10.11648/j.ijfbr.20241001.12,
author = {Ousmanou Alim},
title = {Sustainable Finance and Economical Profitability in Africa
},
journal = {International Journal of Finance and Banking Research},
volume = {10},
number = {1},
pages = {11-19},
doi = {10.11648/j.ijfbr.20241001.12},
url = {https://doi.org/10.11648/j.ijfbr.20241001.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20241001.12},
abstract = {African continent is facing a considerable demonstration of financial institutions and especially bank group which are dominating the banking environment. In the absence of developed financial markets, these bank organisations are at the centre of the economic activity. They are even the main financing source for companies, States, households and represent about 80% of African continent assets. This situation is encouraged by the organisational structure of those banks (subsidiary companies, representative offices, affiliated banks and branches) which permit a better representatively at the level of the continent. This research analyses the influence of sustainable finance principles on the economical profitability of 42 banking groups implanted in African continent between 2010 and 2020. Thus, data used are extracted from annual reports and were analysed through a time cross-sectional regression corrected for any latent heteroscedasticity and serial autocorrelation. At the end, the findings of this research are plural. firstly, green credits and transparency have a non-considerable impact on economical profitability. secondly, employee shareholding and gender diversity have a negative influence on economical profitability. thirdly, corporate environmental responsibility is negatively and highly correlated to bank economic profitability. Finally, philanthropy positively and highly affects economical profitability. One can therefore conclude that the profitability of sustainable finance is mitigated in Africa.
},
year = {2024}
}
TY - JOUR T1 - Sustainable Finance and Economical Profitability in Africa AU - Ousmanou Alim Y1 - 2024/06/26 PY - 2024 N1 - https://doi.org/10.11648/j.ijfbr.20241001.12 DO - 10.11648/j.ijfbr.20241001.12 T2 - International Journal of Finance and Banking Research JF - International Journal of Finance and Banking Research JO - International Journal of Finance and Banking Research SP - 11 EP - 19 PB - Science Publishing Group SN - 2472-2278 UR - https://doi.org/10.11648/j.ijfbr.20241001.12 AB - African continent is facing a considerable demonstration of financial institutions and especially bank group which are dominating the banking environment. In the absence of developed financial markets, these bank organisations are at the centre of the economic activity. They are even the main financing source for companies, States, households and represent about 80% of African continent assets. This situation is encouraged by the organisational structure of those banks (subsidiary companies, representative offices, affiliated banks and branches) which permit a better representatively at the level of the continent. This research analyses the influence of sustainable finance principles on the economical profitability of 42 banking groups implanted in African continent between 2010 and 2020. Thus, data used are extracted from annual reports and were analysed through a time cross-sectional regression corrected for any latent heteroscedasticity and serial autocorrelation. At the end, the findings of this research are plural. firstly, green credits and transparency have a non-considerable impact on economical profitability. secondly, employee shareholding and gender diversity have a negative influence on economical profitability. thirdly, corporate environmental responsibility is negatively and highly correlated to bank economic profitability. Finally, philanthropy positively and highly affects economical profitability. One can therefore conclude that the profitability of sustainable finance is mitigated in Africa. VL - 10 IS - 1 ER -
Accounting, University of Buea, Buea, Cameroon
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