Firm Sustainability Initiatives to Investment Decisions: Mediating Roles of Reputation and Trust Under Organizational Transparency

Abstract

This study aims to examine how firm sustainability initiatives influence investment decisions by shaping investor perceptions and confidence. It is conducted to understand how responsible business practices affect investor sentiment and firm performance, providing insights into how sustainability helps firms attract informed investors and build long-term market credibility. The study reveals that firm sustainability initiatives positively influence informed investment decisions by enhancing investor perceptions. Firms that actively engage in sustainability practices are viewed as more reliable and credible, which strengthens investor confidence and encourages more informed and rational investment choices. The results highlight that organizations should treat sustainability initiatives as a strategic priority to attract and retain investors. Emphasizing clear and transparent communication of such practices can improve investor confidence, support better decision-making, and enhance overall market credibility and firm value.

Keywords: Corporate Sustainability Initiatives, ESG Factors, Investor Decision, Corporate Reputation, Investor Trust, Organizational Transparency