This study investigates the impact of sustainable financial practices on firm value within emerging economies. Given the growing emphasis on sustainability in global finance, understanding how these practices influence corporate performance is critical. A comprehensive literature review is conducted, examining existing studies on sustainable finance, firm value, and the economic context of emerging markets. The findings suggest that sustainable financial practices, such as responsible investing and green financing, have a positive correlation with firm value. However, the degree of impact varies depending on the maturity of the financial markets and the regulatory environment in these economies. The review also highlights gaps in the literature, particularly concerning the long-term effects of sustainability initiatives on firm value. This study contributes to the ongoing discourse by providing a nuanced understanding of how sustainable financial practices can enhance firm value in emerging economies. The implications for policymakers and business leaders are discussed, emphasizing the need for supportive regulatory frameworks to foster sustainable financial practices.
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