HRMARS - The objective of this study is to investigate the effect of CO? emissions on the financial efficiency of Microfinance Institutions (MFIs) in selected ASEAN countries from 2013 to 2020. Additionally, the study explores the moderating roles of Political Stability (PS) and Voice and Accountability (VA) in this relationship. Financial efficiency was measured using the Data Envelopment Analysis (DEA) approach, while multiple panel regression analysis was applied to assess the direct and moderating effects. The results reveal that CO? emissions have a significantly negative impact on the financial efficiency of MFIs. Furthermore, VA exerts a statistically significant moderating influence on the relationship between CO? emissions and financial efficiency, whereas PS does not show a significant moderating effect. These findings provide valuable insights for MFIs, policymakers, and researchers in formulating strategies to enhance financial efficiency while addressing environmental concerns and integrating governance factors into institutional frameworks.
KAMARUDIN et al. (Fri,) studied this question.