The Effect of Green Finance on Firms’ Sustainability: The Moderating Role of Management Commitment

Abstract

The purpose was to examine the effect of green financing on firms’ sustainability: the moderating role of management commitment among Rural Banks. A cross-sectional quantitative research approach was employed on a sample of ninety-nine (99) respondents who were randomly selected. Questionnaire was employed using structured closed-ended 7-point Likert Scale. Descriptive statistics, such as mean score, standard deviation, correlation and regression method were employed for interpretation. The study’s findings revealed there is direct significant effect between green finance practices and firms’ sustainability. Banks management commitment has direct significant effect on firms’ sustainability. Management commitment has strengthened the relationship between green finance and firms’ sustainability. This shows that the rural banks tend to achieve greater and superior sustainability at point when the banks blend management commitment to green finances.