IMPACT OF GREEN FINANCE, DEBT MANAGEMENT, AND CREDIT POLICY ON FINANCIAL PERFORMANCE: MEDIATING ROLE OF FINANCIAL RISK MANAGEMENT AND MODERATING ROLE OF ORGANIZATION SIZE

Abstract

The paper examines nexus of debt management, credit policy, green finance, financial risk management, size of organizations and financial performance in the Pakistani corporate setting. Financial risk management is considered as mediating variable, organizational size is suggested to be a moderator between financial risk management and financial performance. The quantitative approach, the cross-sectional one, was also used, and 350 respondents were chosen to fill in the structured questionnaire, the analysis of which was conducted with the help of PLS-SEM. Findings have verified that green finance, debt management and credit policy have a significant effect on financial risk management which in turn is a strong predictor of financial performance. Mediation is completely endorsed in all three pathways, and the size of the organization is a significant moderator of the financial risk management-financial performance relationship. The financial performance variance is 55.6% which is explained by the model.