Predictive model for measuring sustainability of manufacturing companies

Alena Kocmanova, Žaneta Simanavičienė, Marie Pavlakova Docekalova

    Research output: Contribution to journalArticle

    5 Citations (Scopus)

    Abstract

    The article describes the construction of a predictive model of corporate sustainability, the DACSI Index, for measuring sustainability. The aim of the paper is to propose a predictive model DACSI Index based on economic IEcoi and non-financial indicators IESGi and appropriately selected predictive models DAEco and DAESG for manufacturing companies according to CZ-NACE classification. Predictive models were developed with the use of Multiple Discriminant Analysis (MDA). MDA results showed that the inclusion of non-financial indicators did not result in any significant changes in the classification of companies into individual groups compared to classification on the basis of economic indicators only. From MDA results it also follows that the statistical significance of non-financial indicators is low, but they signal a causal relationship between individual economic and non-financial indicators of sustainability. The results also showed that the predictive model DACSI Index, composed of economic indicators, environmental indicators, social indicators and corporate governance indicators has a much higher accuracy than the predictive model composed of economic indicators only. The essential conclusion of our research into corporate sustainability measurement is that the traditional performance assessment using economic indicators no longer suffices and does not reflect current performance of the company from the long-term perspective, and it is therefore necessary to include both economic and non-financial indicators into the predictive model DACSI Index. And the predictive model DACSI Index is just the type of model that will provide relevant information about the company’s sustainability status to both the owners and investors.
    Original languageEnglish
    Pages (from-to)442-451
    JournalEngineering Economics = Inžinerinė ekonomika: mokslo darbai
    Volume26
    Issue number4
    DOIs
    Publication statusPublished - 2015

    Fingerprint

    Manufacturing companies
    Sustainability
    Economic indicators
    Discriminant analysis
    Corporate sustainability
    Investors
    Corporate governance
    Environmental indicators
    Owners
    Social indicators
    Performance assessment
    Inclusion
    Statistical significance

    Keywords

    • Sustanability measurement
    • Predictive model
    • Indicators
    • Economics

    Cite this

    Predictive model for measuring sustainability of manufacturing companies. / Kocmanova, Alena; Simanavičienė, Žaneta ; Docekalova, Marie Pavlakova.

    In: Engineering Economics = Inžinerinė ekonomika: mokslo darbai, Vol. 26, No. 4, 2015, p. 442-451.

    Research output: Contribution to journalArticle

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