¿Es rentable la inversión en sostenibilidad? Análisis empírico de la innovación verde y el desempeño financiero en Pakistán

Shah Mehmood Wagan

doi:10.16967/23898186.925

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Mehmood Wagan, S. (2025). Does Going Green Pay Off? Empirical Analysis of Green Innovation and Financial Performance in Pakistan. Revista Perspectiva Empresarial, 12(1), 6–21. https://doi.org/10.16967/23898186.925

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Published: Jun 1, 2025

Doi

https://doi.org/10.16967/23898186.925

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PlumX

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Vol. 12 No. 1 (2025): January - June

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ARTICLES

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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Shah Mehmood Wagan Sichuan University

https://orcid.org/0009-0003-0449-2655

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Funding acquisition

Abstract

Green innovation supports businesses decrease their environmental influence while they expand efficiency, competitiveness, and profitability. This study examines impact of green innovation on the financial performance of firms in Pakistan, using panel data from 2015 to 2024. With rising global focus on sustainability, understanding how environmentally friendly practices influence economic results is crucial—mainly in developing economies like the Pakistan, where industrial growth often conflicts with environmental concerns. The study adopts a quantitative approach, using fixed-effects regression models to observe the relationship between green innovation and financial performance, while also testing the mediating role of regulatory compliance and moderating effect of firm size. The results show a statistically significant positive relationship between green innovation and financial performance, as evaluated by Return on Assets (ROA), Return on Equity (ROE), and Tobin’s Q. Regulatory compliance is found to improve this relationship, suggesting that institutional pressures reinforce the financial benefits of sustainable practices.

Keywords

Green Innovation

Financial Performance

Panel Regression

Sustainability

Corporate Governance

Pakistan.

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Author Biography / See

Shah Mehmood Wagan, Sichuan University

PhD from Business School, Sichuan University.

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