Green Finance and Firm Performance: The Mediating Role of Sustainability Disclosure and Investor Trust

Abstract

 Green finance is really important for helping the environment by giving money to projects like renewable energy and things that use less energy. Even though a lot of people are starting to use finance we do not really know if it helps companies do better. This study looks at how using finance affects how well companies do with money and how people see them. We looked at what happens when companies tell people about what they're doing to help the environment and if investors trust them. We used information from 250 companies over ten years to see what is going on. We used kinds of analysis to understand the results. Green finance is what we are talking about. We want to know how it affects companies, like these. The results show that companies using finance do better financially and have a higher value in the market. When companies are open about what they're doing for the environment and investors trust them it helps to make green finance work. This is because being transparent and credible is important, for making green finance successful. This study helps us learn more about finance and gives useful ideas to people who make policies, investors and managers of companies.