Green money, grey result: does green finance matters?

Abdul Razak, Siti Sarah and Ali, Norli and Mat Rahim, Nurhazrina (2025) Green money, grey result: does green finance matters? Asia-Pacific Management Accounting Journal (APMAJ), 20 (3): 1. pp. 1-24. ISSN 2550-1631

Official URL: https://apmaj.uitm.edu.my/

Abstract

The influence of green financing on firm value has garnered significant interest, particularly in advancing the Sustainable Development Goals (SDGs). By adopting environmentally and socially responsible practices, firms can enhance their reputation and attract investors and customers who prioritize sustainability. This study examines whether green finance can affect ESG score by using data from public listed companies in ASEAN, providing evidence on how it increased firm value particularly from non-financial perspectives. The study compared firms with green financing initiatives to those without, using an independent samples t-test. It also observed the delayed effects of green financing issuance as the performance may take time to be materialized by comparing ESG score at issuance year and two years later, using a paired samples t-test which revealed a significant difference on E score. However, regression analysis findings revealed an insignificant effect of green financing on firms’ ESG scores suggesting that the effect of green financing on ESG scores may be less substantial than expected. Nevertheless, the findings of this study are important for sustainability focused investors in risk management and portfolio optimization.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Abdul Razak, Siti Sarah
UNSPECIFIED
Ali, Norli
UNSPECIFIED
Mat Rahim, Nurhazrina
UNSPECIFIED
Subjects: H Social Sciences > H Social Sciences (General) > Public policy (General). Policy sciences
H Social Sciences > HG Finance
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
UiTM Journal Collections: UiTM Journals > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 20
Number: 3
Page Range: pp. 1-24
Keywords: Green financing, ESG, Firm’s value, Green investment
Date: December 2025
URI: https://ir.uitm.edu.my/id/eprint/130441
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