The Impact of Corporate Finance on Sustainability Dimensions in KSA

  • Authors

    https://doi.org/10.14419/bpy3qc16

    Received date: August 21, 2025

    Accepted date: September 26, 2025

    Published date: October 3, 2025

  • Equity Financing; Debt Financing; Economic Sustainability; Environmental Sustainability; Social ‎Sustainability

  • Abstract

    This research paper critically examines the interaction between financial structures and sustainability ‎dimensions in banks in the Eastern Province of Saudi Arabia. The study posits that a bank's financial ‎structure, specifically its mix of debt and equity financing, fundamentally determines its long-term ‎sustainability. The study explores the various funding sources available to bank managers and the ‎economic, environmental, and social sustainability dimensions. Using a descriptive analytical approach, ‎the research collected data via questionnaires from administrators, economists, and accountants in Saudi ‎banks and analysed them using partial least squares structural equation modelling (PLS-SEM). The ‎empirical results reveal a different picture: equity financing positively impacts both economic and ‎environmental and social sustainability. Conversely, debt financing positively impacts economic, ‎environmental, and social sustainability. These insights provide valuable guidance for bank managers, ‎enabling them to make informed financing decisions that optimize resource allocation and enhance the ‎long-term success of banks in the unique Saudi context‎.

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    Khogly , M. E. M. . (2025). The Impact of Corporate Finance on Sustainability Dimensions in KSA. International Journal of Accounting and Economics Studies, 12(6), 66-78. https://doi.org/10.14419/bpy3qc16