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Financial factors influencing investment willingness in environment-friendly business: Empirical study on an emerging economy

Author

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  • Ayoungman, Fairtown Zhou
  • Islam, Md. Shoriful
  • Masukujjaman, Mohammad
  • Shawon, Abid Hossain
  • Al Mahmud, Abdullah

Abstract

The United Nations established Sustainable Development Goals (SDGs) to address resource depletion, global warming, and other environmental issues caused by profit-driven economic activities. In line with the sustainability mission, this study examines the financial factors influencing the evolution of the business sector towards being environmentally friendly. A carefully developed questionnaire with a five-point Likert scale is used to collect data for the empirical study. The study included 150 corporate executives who are closely involved in investment decisions within their respective organizations. Principal component analysis was used to identify financial influences, and a linear regression model was used to build relationships using SPSS. The study found that financial factors strongly impact investment in environmentally friendly corporate operations. The findings make a theoretical contribution by helping us learn more about the factors that make companies want to invest in environment-friendly business practices. It assists us in identifying key and less important elements, improving frameworks and enabling more research. Policymakers can customize incentives, support systems, and regulatory frameworks to businesses investing in sustainable practices by studying the elements that strongly affect their actions.

Suggested Citation

  • Ayoungman, Fairtown Zhou & Islam, Md. Shoriful & Masukujjaman, Mohammad & Shawon, Abid Hossain & Al Mahmud, Abdullah, 2025. "Financial factors influencing investment willingness in environment-friendly business: Empirical study on an emerging economy," Innovation and Green Development, Elsevier, vol. 4(1).
    • Handle: RePEc:eee:ingrde:v:4:y:2025:i:1:s2949753125000037
    DOI: 10.1016/j.igd.2025.100206
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