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Sustainable Finance's Effect on the Green Economy by the Mediation of Corporate Governance in the Horn of Africa

Sustainable Finance's Effect on the Green Economy by the Mediation of Corporate Governance in the Horn of Africa
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Author(s): Shashi Kant (Bule Hora University, Ethiopia), Tafese Niguse (Bule Hora University, Ethiopia), Metasebia Adula (Bule Hora University, Ethiopia)and Aynetu Terefe (Bule Hora University, Ethiopia)
Copyright: 2025
Pages: 20
Source title: Behavioral Finance and AI Tools for Sustainability
Source Author(s)/Editor(s): Fouad Daidai (University Chouaib Doukkali, Morocco), Mimoun Benali (Sidi Mohamed Ben Abdellah University, Morocco)and Larbi Tamnine (Sidi Mohamed Ben Abdellah University, Morocco)
DOI: 10.4018/979-8-3693-9684-1.ch012

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Abstract

This chapter examines the interdependencies among financial sustainability, governance by community-based corporates, and the economics of green ecosystem. Through the use of a quantitative investigation approach, the results show that good governance by community-based corporates has a major positive impact on sustainable financing activities, which in turn helps to advance the development of a strong economics of green ecosystem. Regression analysis reveals that financial sustainability plays a key role in promoting environmental sustainability and governance by community-based corporates. It also delivers convincing experiential indications in support of including ecological, communal, and authority deliberations into in commercial decision-making. This chapter highlights the need for companies to create comprehensive governance structures that link their financial plans to their sustainability goals. It also offers executives and policymakers practical guidance on collaborative initiatives that can foster and support sustainable practices.

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