A novel smart partial least squares-based model for analyzing key factors driving green finance and accounting companies’ performance in big data era

Sustainability in the business world, particularly in the financial sector, entails adopting strategies and practices that benefit both the environment and society, while also ensuring the profitability and financial growth of companies. This concept is becoming a critical factor in assessing green financial performance, as companies that adhere to sustainability principles can manage their resources more efficiently and are more resilient to environmental and economic changes. The analysis of large data sets through big data technologies enables companies to collect extensive environmental, social, and economic information, supporting more informed sustainable practice decisions. Green finance is a relatively new concept that offers an option for green financing to individuals, corporate entities, and governments that are willing to finance and invest in green activities or low-carbon initiatives. The use of big data in green finance facilitates a more accurate assessment of investment opportunities and risks associated with green and low-carbon projects. This paper proposes the Smart Partial Least Squares model to investigate the performance and growth determinants of green finance and accounting firms. As green practices gain traction in the financial industry, it becomes crucial to identify the factors that explain the success of green finance. The proposed model considers both technology-based changes and managerial perspectives in evaluating the key performance drivers. Big data technologies, such as machine learning and artificial intelligence, can be leveraged to gain a deeper understanding of the impact these drivers have on green finance and accounting firms. The results indicate that both internal factors (technological variables and management variables) and external factors (economic variables, legal and regulatory variables) significantly contribute to the growth and efficiency of green finance firms, providing valuable insights for practitioners and policymakers. The research results show that this interaction between internal and external factors is effective in creating a positive cycle between sustainability and green financial performance, which can lead to sustainable and long-term growth of companies in competitive markets. Managers should note that any improvement in ICT application may contribute meaningfully to the overall performance of green finance and accounting firms. This research will contribute to the literature on the performance of green finance and accounting companies by integrating all the mentioned variables, including the role of big data in optimising green finance strategies.