THE IMPACT OF ENVIRONMENTAL SUSTAINABILITY ON FINANCIAL PERFORMANCE OF ORGANIZATIONS; A STUDY OF MALAYSIA

Anam Ashraf; Dr. Ayaz Qaiser; Hasnain Haider; Dr. Surayya Jamal; Sajid Khan

doi:10.71146/kjmr278

Authors

Anam Ashraf Lecturer, Grand Asian University, Sialkot. Author
Dr. Ayaz Qaiser Grand Asian University Author
Hasnain Haider Course: MBA, School of Business & Creative Industries, University of the West of Scotland (UWS). Author
Dr. Surayya Jamal PhD, Abdul Wali Khan University Mardan, Pakistan. Author
Sajid Khan In-Charge (Health, Safety & Environment Laboratory), The Benazir Bhutto Shaheed University of Technology & Skill Development, Khairpur Mirs, Pakistan. Author

DOI:

https://doi.org/10.71146/kjmr278

Keywords:

Environmental sustainability, Financial performance, systematic literature review, Malaysia, Economic

Abstract

The debate on the economic benefits of adopting environmentally friendly practices continues. This study does not aim to resolve the argument; instead, it alleviates it by enhancing the notion of "when it is advantageous to be environmentally conscious". This research study focusses on the shortcomings of current literature review by focusing the influence of environmental sustainability on financial performance of Malaysian firms for the period of 2014-2023. The data is collected from Thomson Reuter DataStream. In general, environmental sustainability and financial performance holds an optimistic relationship. The empirical result shows that the outcome of environmental sustainability on financial performance is positive. Institutional and legitimacy criteria serve as an effective foundation for establishing environmental sustainability. Policymakers and investors must consider these results when formulating economic policies and investment strategies, while enterprises in emerging nations such as Malaysia should recognize the potential implications of these elements and seek appropriate management strategies.