Sustainable Investment Practices of Franchisees: The Role of Green Finance, Net Zero Literacy and Corporate Governance

Investing in a sustainable company increases returns, and reduces risk, along with combatting climate change and even supporting diversity. The purpose of the study is to uncover the importance of green finance, net zero literacy, and corporate governance as predictors of sustainable investments from the perspective of selected business partners. Using the G*Power version 3.1.9.4, the total sample size needed for this study is 77 while the actual participants was 94. The members of sample size were selected through purposive sampling, and the researcher used a partial least squares structural equation modeling (PLS-SEM) to test the hypothesis and model. While the findings indicated that green finance, net zero literacy, and corporate governance have no direct relationship with sustainable investments, the researcher uncovered indirect effects between net zero literacy and sustainable investment practices through green finance and corporate governance. Moreover, green finance can be integrated with corporate governance to achieve significant results. Lastly, indicators of green finance links significantly with corporate governance. The findings of the study show that there is no one-way straight approach for claiming sustainable investments show that there is no one-way straight approach to claiming sustainable investments practices in the context of franchising. This study can be the basis of identifying indicators that will add value to maximize resources deployed by the government to educate the society on sustainable investment practices. While the study’s participants were business partners of franchise businesses, the researcher recommended including possible moderating variables, meet the parametric sampling requirement, increasing the sample size, and considering mixed method design in the methodology for a more compound investigation for future research.