SUSTAINABILITY ACCOUNTING AND INVESTMENT DECISIONS INVESTIGATE HOW SUSTAINABILITY ACCOUNTING INFLUENCES INVESTMENT DECISIONS AND CORPORATE FINANCIAL STRATEGIES: IN CASE OF PAKISTAN

Abstract

This study investigates the influence of sustainability accounting on investment decisions and corporate financial strategies in Pakistan, a nation grappling with significant environmental and social challenges. As global awareness of sustainability increases, organizations are recognizing the necessity of integrating environmental, social, and governance (ESG) factors into their financial practices. The research employs a mixed-methods approach, combining quantitative surveys and qualitative interviews with corporate executives from various sectors. Findings reveal that sustainability accounting practices significantly impact investment decisions, with manufacturing and services sectors showing a strong correlation between sustainability reporting and investor interest. Conversely, the finance sector demonstrates minimal engagement in sustainability practices. Barriers, such as regulatory limitations and a lack of awareness, hinder broader adoption. This study contributes valuable insights into how sustainability accounting can enhance corporate transparency, attract investment, and promote sustainable economic growth in Pakistan.