The role of green investment and corporate social responsibility investment on sustainable performance

Abstract

Studies on green investment and corporate social responsibility (CSR) investment has been conducted by some researchers in the current and future trends of sustainable development. Many of them have focused on the relationship between CSR and financial performance, but only a few have examined how green investment, CSR investment, and sustainability are related to each other. Sustainable performance is based on three aspects: people-planet-profit, or also what is known as the triple bottom line concept. The sample for this study consisted of 132 manufacturing companies listed in the Indonesia Stock Exchange from 2016 to 2019. This study found that green investment and CSR investment positively affect financial performance and sustainable performance. Meanwhile, the financial performance has an insignificant effect on sustainable performance. Besides, financial performance cannot mediate the effect between green investment and CSR investment on sustainable performance.

A Two-Staged SEM-Artificial Neural Network Approach to Analyze the Impact of FinTech Adoption on the Sustainability Performance of Banking Firms: The Mediating Effect of Green Finance and Innovation

“…These findings are consistent with those of earlier studies [5,7,13], which found that GF significantly enhances SP. Likewise, green investment has a significant beneficial influence on an organization's SP [14]. Furthermore, the literature has confirmed that GI significantly enhances the environmental performance of an organization [8,25].…”

“…Moreover, Xu et al [23] have shown that GF improves corporate green performance significantly. Green investment has a considerable positive influence on the firm's financial and SP, according to Indriastuti and Chariri [14]. Although the relationship between GF and firm environmental sustainability is extensively documented in the literature, there has been less emphasis on the interaction of FA, GF, GI, and SP in a single study.…”

“…To date, various studies have recently been conducted to evaluate the relationship between GF and business environmental SP [5,7,13,14]. The literature has demonstrated that GF significantly enhances corporate green performance [15], SP [1,14], and environmental performance [2,5]. Besides, Awawdeh et al [7] observed that technological innovation significantly determines the environmental performance.…”

The Effect of Green Banking Practices on Banks’ Environmental Performance and Green Financing: An Empirical Study

“…Legitimacy theory emphasizes the significance of social consent in promoting a company's long-term viability [31]. It is widely believed that the phenomenon of corporations making voluntary social and environmental disclosures is explained by legitimacy the-ory [32].…”

How green investment drives sustainable business performance for food manufacturing small‐ and medium‐sized enterprises? Evidence from an emerging economy

“…GI is seen as a driver for realising CSR initiatives aiming to improve corporate performance in a sustainable way. However, there are not many few studies on how GI, CSR efforts and SBP are linked together (Indriastuti & Chariri, 2021). In addition, from the resource‐based view (RBV) theory, GI and CSR are seen as corporate resources and capabilities to promote the implementation of green innovation (GIN) leading to SBP (Barney, 1991).…”