The value of financing decisions and sustainability: A hybrid systematic literature review and pathways for future research

Abstract

Purpose: This study seeks to provide a thorough systematic evaluation of peer-reviewed literature about financing decisions related to sustainability, emphasizing current research trends and suggesting future research avenues.

Methodology/design/approach: The study conducts a systematic evaluation of 85 peer-reviewed journal publications concerning finance decisions and sustainability, sourced from the Web of Science database. The study employs the SPAR-4-SLR protocol alongside theory-context-characteristics and method frameworks, integrating framework-based content analysis with bibliometric methods to guarantee methodological rigor and objectivity.

Findings: The review shows that research on financing decisions in the context of sustainability is mostly based on two main areas: strategic decisions and sustainability indices that are meant to help make the best financing decisions. Even though there have been some recent improvements, there are still many promising areas in sustainable finance that need to be looked into. This gives researchers a chance to do more work.

Practical/Implications: This study offers essential insights for corporate decision-makers, investment managers, policymakers, and investors, enabling the incorporation of sustainability factors into financing strategies to improve long-term financial and non-financial sustainability and ensure regulatory compliance.

Value/originality: Financing decisions and sustainability represent a relatively novel research domain in which investors, corporate decision-makers, and change agents are considering factors beyond mere financial rewards. This underscores the importance of this work as a pertinent and significant addition to academic conversation.