Raising Green Finance Allocation Through Robust Governance: Evidence from Pakistani Corporations

Abstract

This study investigates the relationship between Corporate Governance (CG) and the distribution of green funding among Pakistani businesses. The study uses multiple regression analysis, correlation analysis, and descriptive statistics to evaluate the effects of Firm Size (FS), Profitability (PROF), Environmental Disclosure (ED), Board Independence (BI), Corporate Governance Scores (CGS),
and Board Size (BS) on green financing using data from 100 firms trading in the PSX by using convenience sampling of non-probability sampling techniques. The results show that the distribution of green funding is greatly improved by excellent corporate governance. Increased green money is positively correlated with larger and more independent boards, greater environmental disclosures, and higher governance rankings. Another important factor is firm size and profitability, with bigger and more successful businesses drawing more green funding. Sectoral discrepancies are evident in the fact that some industries have limited access to green funding, notwithstanding these favourable links. The findings emphasize how crucial business attributes and governance procedures are to encourage sustainable investment. The study’s conclusion—which offers important information to Pakistani officials and business executives—is that strong CG and transparency are necessary to get Green Finance (GF). Subsequent investigations
ought to go deeper into legislative structures and industry-specific obstacles to augment the distribution of green funds.