Green Finance and Sustainable Development: A Financial Analysis of ESG Investments

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Published: 2025-11-05
DOI: https://doi.org/10.53555/jtar.v21i2.51
Keywords:
ESG integration, sustainable accounting, stakeholder value, disclosure continuum, green finance.

Main Article Content

Dr. Manoj P. K
Shailendra Kumar Singh
Dr. Abhilash N
Muralidhar V
A. Ruban Christopher
Simranpreet Kaur

Abstract

The growing emphasis on sustainable development and responsible investing has elevated the importance of Environmental, Social, and Governance (ESG) factors within financial decision-making. Traditional accounting frameworks, focused predominantly on short-term profitability, are increasingly misaligned with the broader imperatives of green finance and long-term stakeholder value. The study explores the theoretical integration of ESG principles into accounting systems, aiming to contribute to the evolution of sustainable financial reporting and governance models. Adopting a qualitative, theoretical research methodology, the study conducted a structured literature synthesis of conceptual, normative, and institutional perspectives. The analysis was based on secondary sources, including peer-reviewed academic literature, policy documents, and theoretical models spanning ESG investment, accounting theory, and sustainability disclosure. The findings reveal that ESG integration necessitates a fundamental shift in accounting logic, moving beyond shareholder-centric valuation. Key theoretical outcomes include an ESG disclosure continuum, a stakeholder versus shareholder governance model, and a conceptual framework for ESG-integrated accounting systems. These models highlight the role of intangible value drivers, institutional pressures, and governance dynamics in shaping sustainable financial practices. The study underscores the need for accounting systems to evolve in response to ESG imperatives. It offers theoretical insights for academics, practitioners, and regulators, and recommends future empirical validation and digital finance applications to operationalize ESG-aligned accounting.

Article Details

Issue

Vol. 21 No. 2 (2025): Journal of Theoretical Accounting Research

Section

Articles
Creative Commons License

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

Author Biographies

Dr. Manoj P. K

Professor and Head, Department of Applied Economics, Cochin University of Science and Technology (CUSAT), Kochi, Kerala - 682 022, Email ID: manoj_p_k2004@yahoo.co.in, Orcid ID: 0000-0002-5710-1086

Shailendra Kumar Singh

Research Scholar, School of Law, Sun Rise University, Alwar, Rajasthan, Email ID: Shailendrapreet@gmail.com,
Orcid ID: 0009-0000-7486-6171

Dr. Abhilash N

Visiting Professor, Amrita School of Business, Amrita Vishwavidyapeetham, Amritapuri Campus, Kollam,
Email ID: abhiklrtvm@gmail.com, Orcid ID: 0000-0002-6331-649

Muralidhar V

Assistant Professor, NSB Academy, Bangalore, Email ID: vmuralidhar@nsb.edu.in

A. Ruban Christopher

Research Scholar, School of Management, Hindustan Institute of Technology and Science, Chennai, India,
Email ID: rubenchristophera@gmail.com, Orcid ID: https://orcid.org/0009-0003-5081-3640 

Simranpreet Kaur

Assistant Professor, Department of Management Studies, CKD Institute of Management & Technology, Tarn Taran, Punjab, Email ID: kaursimranpreetsach@gmail.com , Orcid ID: 0009-0007-1855-5505 

How to Cite

Green Finance and Sustainable Development: A Financial Analysis of ESG Investments. (2025). The Journal of Theoretical Accounting Research, 21(2), 238-245. https://doi.org/10.53555/jtar.v21i2.51

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