The Moderating Effect of Green Finance on CSR and Financial Performance

In response to investor and societal pressures, companies are increasingly acknowledging the significance of corporate social responsibility (CSR). Although the current utilization of green or responsible financing in corporate funding remains relatively modest, green financing has a discernible upward trajectory. This research, therefore, investigates the influence of CSR and green finance on corporate financial performance. Additionally, it explores the moderating effect of green finance in the relationship between CSR and business performance. Employing panel data modeling, we conducted an analysis using data from seventy-five companies listed on the SBF 120 obtained from the DataStream database covering the years 2015–2021. The findings indicate that both CSR and green finance have a positive and significant impact on companies' financial performance. Moreover, the study suggests that green investment plays a notable and positive moderating role in the interaction between CSR and financial performance. These results underscore the importance of companies integrating CSR practices and embracing a strategy of green investment for enhanced financial performance.