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The role of sustainable investment practices in maintaining efficient working capital management

Year: 2024

Type: article

Abstract: This study provides a theoretical argument supported by empirical evidence regarding the impact of sustainable investment practices on the working capital management of small- and medium-sized enterprises (SMEs). The study utilizes panel data on SMEs from 2014 to 2022. Cluster regression methodology is employed to assess the influence of sustainable investment practices on a firm’s working capital, with green finance (GF) as a moderating variable. Results revealed that a firm’s sustainable investment practices significantly and negatively affect its working capital. Additionally, the study identified GF as a moderator in the relation between sustainability and working capital. The findings indicated that firms actively engaging in sustainable investment practices are more efficient in managing working capital for their business operations’ long-term sustainability.

Source: JOURNAL OF INTERNATIONAL STUDIES

DOI: 10.14254/2071-8330.2024/17-2/11

Authors: Ashfaq Habib, Shaista Anwar, Waleed Hussain, Veronika Fenyves

Institutions: Universiti Putra Malaysia, University of Debrecen, University of Poonch Rawalakot, Liwa University, University of Kotli, Azad Jammu and Kashmir

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4400312975

FWCI: 13.24

Cites: 45

Cited by: 13

Related to: 10