James Obriku Otiwa

Type of the article: Research Article

Abstract
Globally, small and medium-sized enterprises (SMEs) are facing increasing pressure to achieve sustainability goals through vital financing mechanisms, including green financing, social impact investments, and microfinancing. This study examines the impact of modular innovation on the relationship between sustainable development financing (SDF) and the performance of SMEs in an emerging economy. The research used a cross-sectional survey of 740 SMEs across Nigeria from January 2024 to March 2024. After cleaning the data, 612 responses were valid. These responses were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that all three sustainable financing mechanisms have a significant and positive influence on SME performance. Modular innovation, specifically incremental, architectural, and radical innovation, notably moderates these relationships. Incremental innovation exhibited the strongest moderating effect (β = 0.543), followed by radical innovation (β = 0.473), and architectural innovation (β = 0.441). This suggests that innovative capacity enhances the impact of sustainable financing. Consequently, these results underscore the crucial role of modular innovation in improving the effectiveness of sustainable financing for SMEs. They also emphasize the need to incorporate innovation policies that support SME growth via green financing, social impact investments, and microfinancing in emerging economies like Nigeria.

Acknowledgments
The authors express their gratitude to the anonymous reviewers, the journal editor, and all the scholars whose work was referenced in this study. They also sincerely thank the respondents who provided the data necessary for the research.

Type of the article: Research Article

Abstract
The study considers the impact of green governance on investor wealth through the sustainability performance of manufacturing firms in Nigeria from 2015 to 2024. The green governance variables considered in the study include environmental expense ratio, sustainability index score, social expense ratio, and environmental, social, and governance (ESG) facilitators score against earnings per share (EPS) as a proxy for investor wealth. The study adopts the ex post facto research design. This paper employed fixed-effects panel regression to analyze panel data from Dangote Cement, Lafarge Africa, and BUA Cement. The model has an overall predictive ability of 67.4%; therefore, the model was found to be appropriate (p = .001, F = 12.83). The sustainability index score (β = 0.186, p = 0.013), social expense ratio (β = 5.487, p = 0.027), and ESG facilitators scores (β = 0.212, p = 0.018) were found to be significantly and positively related to profitability, while the environmental expense ratio (β = – 1.908, p = 0.312) was found to be non-significant. It can be argued based on the findings that sustainability initiatives combined with social investment and transparent governance practices can increase the wealth of investors. But the environmental expense ratio might take more time before it turns into profitability. The research findings highlighted the theoretical and practical importance of long-term investment in sustainability practices.

Type of the article: Research Article

Abstract
Capital structure decisions in the Nigerian economy are vital and significantly influence the performance of manufacturing firms. This study investigates the effect of the debt-equity ratio on the financial outcomes of the following manufacturing companies: BUA Cement Plc, Dangote Cement Plc, Lafarge Africa Plc, and Flour Mills Nigeria Plc, all quoted on the Nigeria Exchange Group Ltd. during the period 2015–2024. Fixed-effect panel data regression analysis is used to determine the influence of short-term and long-term debts on profit (return on investment). The findings suggest that the negative relationship is strong and statistically significant between the financial performance (profitability) and the leverage ratios, such as short-term debt/net worth ( -0.042, p < 0.025), long-term debt/net worth ( -0.061, p < 0.009), and total debt/net worth ( -0.035, p < 0.025). Therefore, all the null hypotheses were rejected at the 5% level of significance. The model describes the variation in firm performance which is, on average, 39%. At the firm level, BUA Cement Plc experienced a deleveraging trend and the profitability of the firm was on the downwards trend while Flour Mills Plc, owing to its high leverage, was marginally affected in its profit performance. The conclusion is that effective control of capital structure is essential if a better return per naira is to be earned for the country’s manufacturing sector.