Sustainable Financing and Asset Performance for Non-Profit Organizations: A Systematic Review of Literature

Catholic University of Eastern Africa

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Abstract: Sustainable financing has today more than ever become a key driver for asset performance in the complex and dynamic business environment. There are many studies that investigate the effect of sustainable finance on the achievement of Sustainable Development Goals (SDGs). However, there is a gap in the literature, and investigating the effects of sustainable financing on asset performance needs to be explored to discuss possible implication to maximise investment returns for Non-Profit Organizations (NPOs). In this respect, the purpose of this study is to assess the nexus between sustainable financing and asset performance with financial technology having a moderating role. In this study, theoretical review and empirical review on the secondary data collected from sources such as journal articles and published reports. Theories including Priority Theory, Modern Portfolio Theory, Resource Dependence Theory of sustainable finance, and Positive Signalling theory were reviewed in this study. The scope of the study was for the period 2012-2023 and was limited to the sustainable financing in America, Europe and specifically to the emerging and developing economies. The study found that sustainable financing enhances asset performance, maximises investment returns, and facilitates optimum use of resources. Since the current study only examined sustainable financing, asset performance, and financial technology, it is suggested that the future research may examine other aspects such as renewable energy investments.