ABSTRACT
The study examines the determinants of sustainable growth rate of listed non-finance firms in selected Sub-Saharan Africa Countries from 2012 to 2021. To achieve this objective, the study specifically examined the effect of profitability, financial leverage, dividend payout ratio, working capital, asset turnover, and ownership structure on sustainable growth rate of listed non-finance firms in Nigeria, Kenya, and South Africa. The sample size of the study is 229 listed non-finance firms in Nigeria(67), South Africa(136), and Kenya(26). The study employed multivariate panel regression analysis. The results of the analyzed data show that profitability, assets turnover, working capital, and financial leverage are all significant determinants of sustainable growth rate of listed non-finance firms in the selected countries at 1% and 5% significant levels respectively. However, the study’s findings reveal that the variables of ownership structure and dividend payout are not significant determinants of sustainable growth rate of listed non-finance firms in the selected countries at neither 1% nor 5% significant levels. The study concluded that working capital, profitability, and assets turnover significantly increase the sustainable growth rate of listed non-finance firms in the selected countries at 1% and 5% significant levels and financial leverage significantly decrease the sustainable growth rate of listed non-finance firms in the selected countries at 1%. In addition, dividend policy does not significantly increase the sustainable growth rate of listed non-finance firms in the selected countries at neither 1% nor 5% level. Furthermore, the study concluded that ownership structure does not significantly decrease the sustainable growth rate of listed non-finance firms in the selected countries at neither 1% nor 5% level during the period under study. Hence, the study recommends among others that management of listed non-finance firms in Sub Sahara Africa should endeavour to increase productivity, reduce costs, and improve product quality. This is expected to generally increase profitability since sales volume is expected to increase with improved product quality. This will ultimately increase sustainable growth rate in line with the findings recorded in this study.
