Optimal Model to Predict the Sustainability of Taiwanese Firms

Fang‐Yi Lo, W. Wong, Jessica Geovani
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Abstract

The increasing growth of the global population has brought forth greater demand for the goods and services, making the sustainability of a firm, the prediction of it, and whether environment plays a very important role in the sustainability of a firm are among the most important current issues that every business must face. This paper first constructs a new index, called the sustainability index, based on economic, environmental, and social criteria by employing a corporate credit risk index, an evaluation of a firm’s corporate governance, corporate financial performance, and firm age. We apply both Multiple Regression Analysis (MRA) and Fuzzy set Qualitative Comparative Analysis (FsQCA) to obtain the optimal models for predicting a firm’s sustainability. Our analysis shows that the variables including financial leverage, slack, innovation capability, manufacturing capability, and human capital have a significant influence on the sustainability of firms. Our fsQCA analysis obtains configurations of several factors for the sustainability index. The best solution shows that in order to obtain a firm’s high sustainability, three variables (innovation capability, marketing capability, and organizational slack) should be low. Overall, the results from all four variables in the sustainability index are important in the models and our proposed models fit the data very well. The results from our construction of the sustainability index and our analysis by using both multiple regression and fsQCA analyses concludes that environmental factors do play very important roles in the sustainability of a firm. Our findings are useful for academics, managers, and policy makers to predict and maintain a firm’s sustainability.
台湾企业可持续发展之最优预测模型
全球人口的不断增长带来了对商品和服务的更大需求,使得企业的可持续性及其预测,以及环境是否在企业的可持续性中起着非常重要的作用是当前每个企业必须面对的最重要的问题之一。本文首先以经济、环境和社会标准为基础,利用企业信用风险指数、公司治理、公司财务绩效和公司年龄的评价,构建了一个新的指标,称为可持续性指数。我们运用多元回归分析(MRA)和模糊集定性比较分析(FsQCA)来获得预测企业可持续性的最佳模型。我们的分析表明,财务杠杆、松弛、创新能力、制造能力和人力资本等变量对企业的可持续性有显著影响。我们的fsQCA分析得到了可持续性指数的几个因素的配置。最优解表明,为了获得企业的高可持续性,三个变量(创新能力、营销能力和组织松弛)应该是低的。总体而言,可持续性指数中所有四个变量的结果在模型中都很重要,我们提出的模型与数据拟合得很好。通过构建可持续发展指数,运用多元回归分析和fsQCA分析,得出环境因素在企业可持续发展中发挥重要作用的结论。我们的研究结果对学者、管理者和政策制定者预测和维持公司的可持续性很有帮助。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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