Scientific Papers


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ISSN: 2306-3483 (Online), 2071-8330 (Print)

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The role of sustainable investment practices in maintaining efficient working capital management

Vol. 17, No 2, 2024


Ashfaq Habib


Faculty of Management Sciences, 

University of Poonch Rawalakot, Pakistan

ORCID 0000-0003-0674-496X

The role of sustainable investment practices in maintaining efficient working capital management

Shaista Anwar


Faculty of Business, Liwa College,

AbuDhabi, UAE

ORCID 0000-0001-8332-3929

Waleed Hussain


School of Business and Economics,

University Putra Malaysia, Malaysia;

Faculty of Management Sciences,

University of Kotli, Pakistan 

ORCID 0009-0002-7419-5261

Veronika Fenyves


University of Debrecen, 

Faculty of Economics and Business


ORCID 0000-0002-8737-0666




Abstract. This study provides a theoretical argument supported by empirical evidence regarding the impact of sustainable investment practices on the working capital management of small- and medium-sized enterprises (SMEs). The study utilizes panel data on SMEs from 2014 to 2022. Cluster regression methodology is employed to assess the influence of sustainable investment practices on a firm’s working capital, with green finance (GF) as a moderating variable. Results revealed that a firm’s sustainable investment practices significantly and negatively affect its working capital. Additionally, the study identified GF as a moderator in the relation between sustainability and working capital. The findings indicated that firms actively engaging in sustainable investment practices are more efficient in managing working capital for their business operations’ long-term sustainability.


Received: June, 2023

1st Revision: January, 2024

Accepted: May, 2024


DOI: 10.14254/2071-8330.2024/17-2/11


JEL ClassificationG11, O44, Q01, Q56

Keywordsworking capital, sustainability index, green finance, SMEs