BLOCKCHAIN ADOPTION AND GREEN FINANCE TRANSPARENCY: THE MEDIATING ROLES OF INFORMATION ACCURACY AND FINANCIAL ACCOUNTABILITY

Abstract

Background: The fast expansion of green finance has raised the issue of transparency, accountability and accuracy of financial reporting of environmental projects. Nevertheless, obstacles to sustainable flow of investment are usually encountered in the form of data manipulation, disjointed information systems and mistrust towards financial disclosures. Decentralized and immutable properties of blockchain technology can address these problems by improving data integrity and traceability. Although this is possible, empirical research on the role of blockchain adoption in enhancing transparency in green finance is still scarce, especially in developing countries such as Pakistan. Purpose: The proposed research is expected to explore the effect of blockchain implementation on green finance transparency with a focus on the mediating variables of information accuracy and financial accountability. The studies attempt to comprehend how blockchain-based systems can improve the credibility of the sustainability-related financial information and reinforce accountability practices that can foster transparent green investment procedures. Methodology:  Quantitative cross-sectional research design was used. The sample of chief financial officers, sustainability managers and finance executives in manufacturing, energy and financial companies with green financing programs in Pakistan were used to collect the data. Among 500 distributed questionnaires, 346 valid responses were obtained. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data, which was using SmartPLS 4. The model examined the direct correlation between blockchain adoption and transparency in green finance and the indirect relationship through the accuracy of information and financial responsibility. Findings: The findings indicate that the use of blockchain can greatly enhance the transparency of green finance by guaranteeing real-time verification, safe data storage and traceable financial transactions. The accuracy of information, as well as financial accountability, partially mediate this relationship. Blockchain improves the accuracy of information by minimizing the risks of errors and tampering, whereas better financial accountability helps to make sure that the resources devoted to green projects are spent in a responsible and transparent way.

Keywords: Blockchain adoption, green finance transparency, information accuracy, financial accountability.