Intellectual Capital to Enhancing Sustainable Financial Performance: The Mediating Role of Green Finance
Eka Indriyani MS (a*), Syamsu Alam (b), Abdul Razak Munir (c)

a) Management Department, Alauddin State Islamic University, Makassar, Indonesia
*eka.indriyani[at]uin-alauddin.ac.id
b,c) Management Department, Hasanuddin University, Makassar, Indonesia

Abstract

Sustainable economic development is a strategy to address the challenges of climate change and pollution and create competitive advantages. Companies are becoming more conscious of how crucial it is to implement cutting-edge sustainable practices to attain environmentally conscious economic growth. To accomplish sustainable development objectives, intellectual capital is essential to implementing sustainable finance. Its experience, knowledge, and expertise can be used to establish a robust infrastructure and foster innovation. This study aims to examine how intellectual capital is impacted by green finance as a mediator in attaining sustainable financial performance. The analytical method used in this study is SEM-PLS with purposive sampling. The selected sample includes 25 companies listed on the Indonesia Stock Exchange. The results showed that applying green finance can play its role as a mediator. This is evidenced by the support of environmentally friendly practices, risk management, capital allocation for the green industry, and the application of environmental standards in company reports. The contribution of this study requires the integration of sustainability aspects in financial decisions to achieve sustainable financial performance.

Keywords: Intellectual Capital- Green Finance- Sustainable Financial Performance

Topic: Financial management