In developing nations, environmental policies have not given nearly enough consideration to the role that environmentally friendly innovation plays. Green innovation and long-term financial performance are extremely dependent on one another. Despite the fact that numerous studies have investigated the impact that a variety of corporate social responsibility (CSR) activities have had on environmental sustainability, relatively few have investigated the implications of green innovation strategies and sustainability. From the mid-2021 through to mid-2022, information was gathered from 184 businesses listed on the Pakistan Stock Exchange (PSX) across 12 different industries. Estimates of the results were obtained by the use of structural equation modeling using partial least squares (PLS-SEM). The outcomes of the study indicated that all parts of CSR were positively significant in the process of fostering environmentally sustainable growth, with the exception of one aspect of CSR that was directed toward customers. Additionally, sustainable development contributes to the mediation impact that green innovation has, making this effect even more powerful. The data show that CSR activities have an exceptional impact on financial performance (FP) in all aspects other than one, and that green innovation (GI) also has a high-quality impact on FP, which demonstrates the significance of CSR practices in enhancing sustainable environment.

PurposeThe primary goal of this study is to look at the behavioral factors that influence an individual's decision to invest in the Pakistan Stock Exchange (PSX).Design/methodology/approachExisting behavioral finance theories serve as a foundation for hypotheses. Further hypotheses were investigated by disseminating questionnaire results from a number of individual Pakistani investors. Brokerage and asset management fund managers were also questioned in semi-structured interviews. The obtained data were analyzed using statistical package for the social sciences, and latent variables were identified using the structural equation model (SEM) and an asset management operating system (AMOS).FindingsIndividual investor investment decisions in the PSX are influenced by five behavioral factors: herding, market, prospect, overconfidence and gambler fallacy and anchoring-ability bias. The majority of the variables have a modest impact; however, the market component has a significant impact. Only three behavioral elements, herding, prospect and heuristic, are found to influence investment performance among the behavioral factors stated above. Heuristic habits have been discovered to have the greatest positive impact on investment performance.Practical implicationsThis study is one of the few in Pakistan that looked at the factors that influence stock investment decisions using behavioral finance. Prior research has only considered the effects of a restricted number of behavioral characteristics on Pakistani individual investors; however, this study seeks to use a whole collection of behavioral factors to examine their impacts on Pakistani individual investors.Research limitationsThe focus of the study remains on the individual investor, whereas the impact of institutional investors on investment behavior could bring different outcomes.Originality/valueThis is among the few studies that investigated the impact of cognitive factors on investment decisions in the context of Pakistan and will help policy makers, opinion makers and individuals.

Green innovation hasn't gotten much attention as a factor of environmental policies in developing countries like Pakistan. Green innovation and long-term financial performance are very much dependent yet; despite the fact that many studies have looked into the influence of various corporate social responsibility (CSR) activities on environmental sustainability, few have looked into the implications of green innovation strategies and sustainability. From January to December 2021, data were collected from the respondent of 184 listed companies of 12 sectors of Pakistan Stock Exchange (PSX). The results were estimated by using partial least squares structural equation modeling (PLS-SEM). According to the findings of the study, all aspects of CSR were determined to be favorably significant in promoting environmentally sustainable growth except one aspect of CSR to consumers. Furthermore the mediation effect of green innovation is also aided by environmentally sustainable development.