The influence of sustainable innovation on financial entrepreneurship performance: Growth and prediction in an emerging market

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Abstract

This study aims to perceive the effect of financial entrepreneurship performance (FEP) over sustainable innovation (SI) disclosure in an emerging market. Jordanian banks are tested based on a multiple regression analysis for the periods 2008 and 2018 and a time series forecasting webinar analysis for the period from 2019 to 2029 based on data ranging from 2008 to 2018. Innovation is indicated through disclosed intangible assets (IA), and items related to research and development (R&D) costs. As organizations anticipate stability by concentrating on technological awareness to influence higher innovative performance (Guo, Guo, Zhou, & Wu, 2020), this study came to converse the relationships between previous literature variables; Hussain (2015) as well as Lassala, Apetrei, and Sapena (2017) revealed through the regression models that there is a relationship between FEP and SI. Meanwhile, bank FEP is directed by return on assets (ROA) and return on equity (ROE). Results reveal that bank FEP affects SI disclosure in a positive manner for the period 2008 and at a higher significant level than 2018. In the meantime, the growth prediction analyses divulge that both ROA and ROE are expected to decrease rapidly within a coming couple of years and then increase promptly.

Keywords: Sustainable Innovation, Financial Entrepreneurship Performance, Intangible Assets, Research and Development

Authors’ individual contribution: Conceptualization — M.E.H. and A.F.S.; Methodology — M.E.H. and A.F.S.; Investigation — M.E.H. and A.F.S.; Writing — Original Draft — M.E.H. and A.F.S.; Writing — Review & Editing — M.E.H. and A.F.S.; Supervision — M.E.H. and A.F.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D23, G17, G21, F650, L26, O34

Received: 22.06.2021
Accepted: 04.01.2022
Published online: 06.01.2022

How to cite this paper: Hamdallah, M. E., & Srouji, A. F. (2022). The influence of sustainable innovation on financial entrepreneurship performance: Growth and prediction in an emerging market. Journal of Governance & Regulation, 11(1), 27–37. https://doi.org/10.22495/jgrv11i1art3