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“The Impact of Green Financing Instruments on the Capital Structure of Muscat Stock Exchange – Listed Companies in Omanâ€

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  • Dr. Mohammed Jahangir Ali

    (Department of Business Administration and Accounting, Al Buraimi University College, Al Buraimi – Sultanate of Oman))

Abstract

This study examines the impact of green financing on the capital structure of companies listed on the Muscat Stock Exchange (MSX) in Oman from 2019 to 2023. Focusing on green bonds, sustainability-linked loans, and other eco-friendly instruments, the research employs a quantitative approach using secondary data to assess changes in debt-to-equity ratios and overall financial strategies. Findings reveal that firms utilizing green finance demonstrate stronger capital structures, lower borrowing costs, and greater financial stability. The study highlights green finance as a key driver for sustainable growth and offers policy recommendations to enhance its adoption in Oman.

Suggested Citation

  • Dr. Mohammed Jahangir Ali, 2025. "“The Impact of Green Financing Instruments on the Capital Structure of Muscat Stock Exchange – Listed Companies in Omanâ€," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 1445-1459, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:1445-1459
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    References listed on IDEAS

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    1. Afshan Younas & Aza Azlina Md Kassim, 2023. "Exploring the Impact of Corporate Social Responsibility on Leverage of Listed Companies in Oman," Springer Proceedings in Business and Economics, in: Nesrin Özataç & Korhan K. Gökmenoğlu & Daniel Balsalobre Lorente & Nigar Taşpınar & Bezhan Rustamov (ed.), Global Economic Challenges, pages 39-53, Springer.
    2. Tang, Dragon Yongjun & Zhang, Yupu, 2020. "Do shareholders benefit from green bonds?," Journal of Corporate Finance, Elsevier, vol. 61(C).
    3. Flammer, Caroline, 2021. "Corporate green bonds," Journal of Financial Economics, Elsevier, vol. 142(2), pages 499-516.
    4. Josué Banga, 2019. "The green bond market: a potential source of climate finance for developing countries," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 9(1), pages 17-32, January.
    5. Torsten Ehlers & Frank Packer, 2017. "Green bond finance and certification," BIS Quarterly Review, Bank for International Settlements, September.
    6. Josué Banga, 2019. "The green bond market : a potential source of climate finance for developing countries," Post-Print halshs-01841868, HAL.
    7. Udayakumari Vidhyasagara Menon, 2016. "Impact of Capital Structure on Stock Prices: Evidence from Oman," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 249-257, September.
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