EFFECT OF GREEN FINANCING ON SUSTAINABLE BUSINESS PERFORMANCE IN NEPAL

Abstract

This study examines the impact of green financing, green investment, and corporate social responsibility (CSR) on sustainable business performance in Nepal. The primary objective of this study is to assess public awareness of these concepts, analyze their relationship with business performance, and evaluate the impact of green financing on sustainability. The research design employs a combination of descriptive and causal-comparative approaches. The descriptive design evaluates public awareness of green financing, green investment, and CSR using descriptive statistics. Concurrently, the causal-comparative design assesses the impact of green financing on sustainable business performance. The study focuses on the Kathmandu Valley, with a sample size of 400 selected through convenience sampling. Data is collected via a structured questionnaire based on prior research and expert feedback, utilizing a five-point Likert scale. Data analysis is performed using Microsoft Excel and SPSS, with descriptive statistics summarizing the dataset and correlation analysis examining variable relationships. Multivariate regression models assess the impact of green financing, green investment, and CSR on sustainable business performance, following the research framework, which positions these factors as independent variables influencing the dependent variable. The findings reveal that green financing, green investment, and CSR positively impact sustainable business performance in Nepal. Green financing and green investment show moderate positive correlations, while CSR demonstrates a strong positive correlation with business performance. These relationships are statistically significant, indicating that all three variables are crucial for enhancing business sustainability. The study underscores the importance of integrating green financing, green investment, and CSR into business strategies to improve sustainable performance. Theoretical contributions include supporting frameworks linking environmental and social practices to business success. It is recommended that businesses and policymakers focus on promoting and implementing these practices to drive sustainable growth.