Analysis of the Impact of Green Investment on Corporate Financial Sustainability in West Java
DOI:
https://doi.org/10.58812/wsis.v1i11.344Keywords:
Green Investment, Corporate Financial Sustainability, West JavaAbstract
This study investigates the impact of green investment on the financial sustainability of companies in West Java, Indonesia, using quantitative analysis of a sample of 100 companies. Descriptive statistics, correlation analysis, and regression analysis were conducted using SPSS version 26 to assess the relationship between green investment and financial indicators, taking into account moderating variables. The results showed a moderate level of green investment among the companies, with a positive correlation between green investment and financial sustainability indicators (ROI, Net Profit Margin) and a negative correlation with Debt to Equity Ratio. Regression analysis confirmed a significant and positive relationship between green investment and financial sustainability, even when accounting for industry type and firm size. These findings contribute empirical evidence supporting the positive relationship between green investment and financial sustainability in the context of businesses in West Java.
References
K. G. Joseph, K. R. David, and S. Eric, “Social Innovation: A Mediator between Collaborative Competence and Sustainable Business Practices,” J. Bus., vol. 11, no. 2, pp. 161–168, 2023.
F. Wibowo, F. I. F. S. Putra, M. Izzudien, and S. Sulastri, “Stimbut: Initiation of a Sustainable Business Strategy Model in Improving MSME Capability to Meet Consumer Expectations,” J. Penelit. Ekon. dan Bisnis, vol. 8, no. 1, pp. 1–9, 2023.
M. Fischer et al., Sustainable Business: Managing the Challenges of the 21st Century. Springer Nature, 2023.
S. Zhivkova, “SUSTAINABILITY AND THE REASONS FOR ITS ADOPTION IN THE COMPANIES,” Proc. CBU Econ. Bus., vol. 3, pp. 75–80, 2022.
A. Khare, A. Ojala, and W. W. Baber, Sustainable International Business Models in a Digitally Transforming World. Routledge, 2022.
I. G. P. R. Andaningsih, T. Trinandari, N. Novita, and K. Kurnia, “Pemberdayaan UMKM Melalui Digitalisasi Keuangan Menggunakan Aplikasi Catatan Keuangan di Pasar Kranggan Wilayah Kecamatan Jati Sampurna Kota Bekasi Jawa Barat,” J. Abdimas BSI J. Pengabdi. Kpd. Masy., vol. 5, no. 1, pp. 143–155, 2022.
T. P. Nugrahanti and A. S. Pratiwi, “The Remote Audit and Information Technology: The impact of Covid-19 Pandemics,” JABE (JOURNAL Account. Bus. Educ., vol. 8, no. 1, pp. 15–39, 2023.
M. Kerim, N. Ellyawati, R. Reza, and D. Destari, “PENGARUH PROFITABILITAS DAN LIKUIDITAS TERHADAP RETURN SAHAM PADA PT INDOFOOD SUKSES MAKMUR Tbk YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) TAHUN 2013-2020,” J. Prospek Pendidik. Ilmu Sos. dan Ekon., vol. 4, no. 1, pp. 45–52, 2022.
D. Destari, “Peningkatan Kualitas Program Studi PBI Sekolah Tinggi Agama Islam Negeri Samarinda,” J. Fenom., vol. 7, no. 1, 2015.
G. R. Akkartal and F. Mızrak, “Defining reverse and green supplier selection criteria with a strategic management approach,” in Economic Development and the Environmental Ecosystem: The Role of Energy Policy in Economic Growth, Springer, 2023, pp. 205–218.
M. Arslan and C. Cruz, “Modeling semantic business trajectories of territories for multidisciplinary studies through controlled vocabularies,” in 2023 IEEE 39th International Conference on Data Engineering Workshops (ICDEW), IEEE, 2023, pp. 170–177.
K. Mellahi, J. G. Frynas, P. Sun, and D. Siegel, “A review of the nonmarket strategy literature: Toward a multi-theoretical integration,” J. Manage., vol. 42, no. 1, pp. 143–173, 2016.
O. E. Amah and S. Jones, “Considering the Short-Term and Long-Term Impact of Products and Services on the Planet,” in Products for Conscious Consumers, Emerald Publishing Limited, 2022, pp. 135–150.
P. Mititean, “Board attributes and social and environmental performance. Evidence from the energy sector,” J. Account. Manag. Inf. Syst., vol. 22, no. 1, pp. 130–146, 2023.
T. Wiyanti, F. Lestari, Y. Yoedani, and Y. Iskandar, “Production Quality Control as An Important Factor to Meet Buyer Quality Standards at The Garment Company PT. Sukabumi Single Estuary,” Devot. J. Res. Community Serv., vol. 4, no. 5, pp. 1195–1210, 2023.
Y. Iskandar, H. F. Ningrum, and B. M. B. Akbar, “PERAN FAKTOR INTERNAL DAN EKSTERNAL PADA KINERJA KEUANGAN PERUSAHAAN RITEL,” J. Ilm. MEA (Manajemen, Ekon. Akuntansi), vol. 4, no. 2, pp. 36–45, 2020.
U. B. Jaman, “Legal Analysis of The Impact of Industrial Development on The Environment,” Easta J. Law Hum. Rights, vol. 1, no. 03, pp. 87–92, 2023.
J. Ye and E. Dela, “The Effect of Green Investment and Green Financing on Sustainable Business Performance of Foreign Chemical Industries Operating in Indonesia: The Mediating Role of Corporate Social Responsibility,” Sustainability, vol. 15, no. 14, p. 11218, 2023.
S. A. Javeed, R. Latief, and U. Akram, “The Effects of Board Capital on Green Innovation to Improve Green Total Factor Productivity,” Sustainability, vol. 15, no. 13, p. 10023, 2023.
K. Li, L. Huang, J. Zhang, Z. Huang, and L. Fang, “Can ESG Performance Alleviate the Constraints of Green Financing for Chinese Enterprises: Empirical Evidence from China’s A-Share Manufacturing Companies,” Sustainability, vol. 15, no. 14, p. 10970, 2023.
Z. Bokayev, A. Kaishatayeva, T. Dzhulamanov, M. Aisin, and A. Maukenova, “Development of Marketing Tools to Raise Funds for Green Projects. Experience of the Republic of Kazakhstan,” J. Environ. Manag. Tour., vol. 14, no. 3, pp. 689–697, 2023.
J. Zhou and S. Jin, “Corporate Environmental Protection Behavior and Sustainable Development: The Moderating Role of Green Investors and Green Executive Cognition,” Int. J. Environ. Res. Public Health, vol. 20, no. 5, p. 4179, 2023.
R. Miranti, “Understanding the Relationships between Development Factors and Regional Poverty: What Have We Learned from Indonesia?,” J. Poverty, vol. 21, no. 6, pp. 483–507, 2017.
H. N. Sofhya, “Comparison of Agglomerative Hierarchy Methods in Grouping Cities in West Java Based on Gross Regional Domestic Product,” Eduma Math. Educ. Learn. Teach., vol. 12, no. 1, pp. 101–111, 2023.
D. Eprilianto and D. F. Artanti, “Manajemen Strategi Kerjasama Antar Daerah dalam Meningkatkan Desentralisasi Ekonomi Pasar,” Administratio, vol. 14, no. 1, pp. 31–44, 2023.
M. Apriyani and K. Kustini, “The Influence of Entrepreneurial Competence and Entrepreneurial Knowledge on Business Success in Msmes in Madiun City,” J. Syntax Admiration, vol. 4, no. 6, pp. 699–717, 2023.
N. Istifadah and C. F. Ananda, “INDUSTRIALIZATION IN EAST JAVA PROVINCE,” 2022.
H. Ashari and T. P. Nugrahanti, “Household economy challenges in fulfilling life needs during the Covid-19 pandemic,” Glob. Bus. Econ. Rev., vol. 25, no. 1, pp. 21–39, 2021.
P. T. Nugrahanti, “Pengaruh Ukuran Kantor Akuntan Publik, Pergantian Kantor Auntan Publik, Spesialisasi Audit di Bidang Industri Klien, dan Independensi Akuntan Publik Terhadap Kualitas Audit Serta Implikasinya Pada Kualitas Disclosure Laporan Keuangan.” Disertasi, Universitas Padjajaran, 2013.
A. B. Siddik, M. N. Rahman, and L. Yong, “Do fintech adoption and financial literacy improve corporate sustainability performance? The mediating role of access to finance,” J. Clean. Prod., p. 137658, 2023.
J. Ma and C.-P. Chang, “The Role of Green Finance in Green Innovation: Global Perspective from 75 Developing Countries,” Emerg. Mark. Financ. Trade, pp. 1–20, 2023.
S. Mondal, “The Nexus Between Green Entrepreneurship and Sustainable Development: An Econometric Study,” Glob. Bus. Rev., p. 09721509231157009, 2023.
T. Hajdu, J. Lukács, and A. Reizingerné Ducsai, “Squaring the Circle, or a Quantified Rating of ESG Reports,” PÉNZÜGYI SZEMLE/PUBLIC Financ. Q., vol. 69, no. 2, pp. 99–117, 2023.
M. M. Ahmed and R. I. Al-Hamdani, “Measuring Financial Sustainability Using the Dupont Model, an Analytical Search for Real Estate Companies Registered in the Amman Stock Exchange for the Period 2008-2020,” TANMIAT AL-RAFIDAIN, vol. 41, no. 136, 2022.
A. Matuszewska-Pierzynka, “Sales Revenues and Corporate Sustainability Performance: an Efficiency Analysis of the 20 Top Companies Listed on the Warsaw Stock Exchange,” Folia Oeconomica Stetin., vol. 23, no. 1, pp. 144–169, 2023.
H. A. Mohaisen, A. T. Ibrahem, and A. A. Hameed, “Auditing Sustainable Performance Using the Sustainable Value-Added Model: Applied to Banks Registered in the Stock Exchange,” Tikrit J. Adm. Econ. Sci., vol. 19, no. 61, 2, pp. 73–93, 2023.
J. K. Ghaidan and F. R. Hamid, “POSSIBILITIES AND OPPORTUNITIES TO ACHIEVE FINANCIAL SUSTAINABILITY IN IRAQ AFTER 2003 (FUTURE VISION),” Am. J. Bus. Manag. Econ. Bank., vol. 14, pp. 29–44, 2023.
Y. Xiao, W. Yan, and B. Peng, “Explore the Complex Interaction between Green Investment and Green Ecology: Evaluation from Spatial Econometric Models and China’s Provincial Panel Data,” Sustainability, vol. 15, no. 12, p. 9313, 2023.
Y. Levchenko, “Assessing and ensuring enterprise investment attractiveness in the context of regional development.” Mykolo Romerio universitetas, 2018.
H. Wen, J. Shi, and P. Lu, “Can Green Technology Innovation Reduce the Operational Risks of Energy-Intensive Enterprises?,” Systems, vol. 11, no. 4, p. 194, 2023.
S. Zheng and S. Jin, “Can Enterprises in China Achieve Sustainable Development through Green Investment?,” Int. J. Environ. Res. Public Health, vol. 20, no. 3, p. 1787, 2023.
S. K. Park, “15. Sustainable finance in global capital markets,” Res. Handb. Glob. Cap. Mark. Law 0, p. 236, 2023.
F. Wu, X. Wang, and T. Liu, “Sustainable development goals, natural resources and economic growth: Evidence from China,” Resour. Policy, vol. 83, p. 103520, 2023.
M. A. Hidayatullah, “The Thin Line between Sustainability and Deception: Understanding the Correlation between Green Management and Financial Accounting Fraud,” 2023.
I. K. Ofori, F. Figari, and N. Ojong, “Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth,” J. Clean. Prod., vol. 406, p. 137020, 2023.
N. T. Hung, “Green investment, financial development, digitalization and economic sustainability in Vietnam: Evidence from a quantile-on-quantile regression and wavelet coherence,” Technol. Forecast. Soc. Change, vol. 186, p. 122185, 2023.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Muhammad Taswin, Loso Judijanto, Eko Sudarmanto, Ambar Kusuma Astuti
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
+62 821 1557 5700 
info@westscience-press.com 