The Concept of Financial Sustainability and Its Relationship with Company Financial Performance: Management and Shareholders’ Perspectives

The purpose of this study is to investigate, from the viewpoints of management and shareholders, the idea of financial sustainability and its relationship to the financial performance of businesses. The ability of an economic entity to meet its financial objectives while actively adapting to changes in both the internal and external environment is referred to as financial sustainability. This idea is strongly linked to sustainable finance, which is the process of incorporating environmental, social, and governance (ESG) considerations into financial decisions. Three primary hypotheses are put forth in this study: Three things have a favourable effect on financial performance: (1) environmental management practices; (2) natural resource-based view (NRBV) initiatives; and (3) environmental sustainability activities. This claim is supported by a review of the research, which indicates that, despite some variation and complexity in the relationship, sustainability parameters and financial performance are positively correlated.