BUILDING SUSTAINABILITY BRIDGES : ANALYZING THE RELATIONSHIP BETWEEN RISK - TAKING AND THE EFFECTIVENESS OF GREEN FINANCE IN COMPANIES LISTED ON THE IDX / SYARIEF GERALD PRASETYA

This study empirically examines the relationship between risk-taking behavior, green finance, and corporate sustainability performance. Using quantitative methods with Partial Least Square (PLS) analysis, it analyzes 99 observations from 25 companies listed on the Indonesia
Stock Exchange (IDX) that published Sustainability Reports during 2013-2022. The results reveal a negative, significant relationship between risk-taking and green finance, but no
significant impact on sustainability performance. This suggests that risk-taking hinders green finance effectiveness but does not directly affect sustainability outcomes. The study highlights the need for robust risk management within sustainability frameworks, emphasizing the
model's strong predictive power. It provides insights into the interplay between risk-taking and green finance effectiveness, advocating for aligning financial goals with environmental responsibilities. Practically, managers should integrate sustainability into strategic planning,
adopt transparent decision-making, and incentivize eco-friendly initiatives. Collaboration with regulators and financial institutions, such as issuing guaranteed green bonds, can mitigate risks and promote green finance adoption. Balancing risk-taking with sustainability is essential to creating long-term corporate and environmental value