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

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.

The impact of green innovation on sustainability and financial performance: Evidence from the Jordanian financial sector

“…Accounting for innovation implementation helps managers to identify products with elevated social and environmental costs, which in turn facilitates the evaluation of business FP (Al‐Okaily, 2021, 2022, 2023; Abd Rahman et al, 2020; Al‐Okaily &, 2022; Nnamani et al, 2017). The study by Hamdallah and Srouji (2022) highlights the importance of incorporating both financial and non‐financial information from annual reports for improved strategic management and better strategy assessment. Thus, it can be argued that ROA and Tobin's Q are utilized as measures of FP.…”