Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance
Abstract
:1. Introduction
2. Literature Review and Hypotheses Development
2.1. Stakeholder Theory
2.2. Triple Bottom Line
2.3. Financial Performance
2.4. Financial Sustainability
2.4.1. Business Value
2.4.2. Business Continuity
3. Materials and Methods
Variables
4. Results
5. Discussion
5.1. Theoretical Implications
5.2. Practical Implications
5.3. Limitations and Future Lines of Research
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Dependent Variable | Acronyms | Formula | References | ||
---|---|---|---|---|---|
Return on assets | ROA | Earnings before interests and taxes/total assets | [104,105] | ||
Independent Variables | Hypotheses | Expected influence | |||
Net profit to equity ratio | H1 (a) (b) (c) | Positive | NPE | Net profit/equity | [54,56] |
Total assets to current assets ratio | H2 (a) (b) (c) | Positive | TACA | Total assets/current assets | [59,61] |
Asset turnover ratio | H3 (a) (b) (c) | Positive | AT | Revenue/assets | [43] |
Current ratio | H4 (a) (b) (c) | Positive | CUR | Current assets/current liabilities | [82,110] |
Total liabilities to total assets ratio | H5 (a) (b) (c) | Positive | TLTA | Total liabilities/total assets | [85,86] |
Model 1 | Model 2 | Model 3 | |
---|---|---|---|
Small Firms | Medium Firms | Large Firms | |
NPE | 1.0000 | 1.0000 | 1.0000 |
TACA | 1.0000 | 1.0000 | 1.0000 |
AT | 1.0018 | 1.0000 | 1.0000 |
CUR | 1.0000 | 1.0000 | 1.0000 |
TLTA | 1.0018 | 1.0000 | 1.0000 |
Model 1 | Model 2 | Model 3 | |
---|---|---|---|
Small Firms | Medium-Sized Firms | Large Firms | |
NPE | 0.044 (0.389) *** | 0.031 (0.404) ** | 0.080 (5.161) *** |
TACA | 0.068 (0.000) * | 0.046 (0.007) * | 0.077 (0.001) *** |
AT | 0.019 (4.705) *** | 0.020 (2.073) *** | 0.032 (4.890) *** |
CUR | −0.034 (0.000) ** | 0.415 (0.006) ** | 0.042 (0.013) * |
TLTA | 0.017 (0.096) *** | 0.333 (0.028) *** | 0.017 (0.063) *** |
Obs. | 157 077 | 455 094 | 32 559 |
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Nogueira, E.; Gomes, S.; Lopes, J.M. Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance. Sustainability 2024, 16, 6458. https://doi.org/10.3390/su16156458
Nogueira E, Gomes S, Lopes JM. Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance. Sustainability. 2024; 16(15):6458. https://doi.org/10.3390/su16156458
Chicago/Turabian StyleNogueira, Elisabete, Sofia Gomes, and João M. Lopes. 2024. "Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance" Sustainability 16, no. 15: 6458. https://doi.org/10.3390/su16156458
APA StyleNogueira, E., Gomes, S., & Lopes, J. M. (2024). Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance. Sustainability, 16(15), 6458. https://doi.org/10.3390/su16156458