Company sustainability model based on financial efficiency model by P-VAR model

Subject Areas : Financial engineering

saman ebadi ¹ , Rasoul Abdi ^{2 *} , nader rezaei ³ , Asgar pakmaram ⁴

1 - Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
2 - Department of Accounting , Bonab Branch, Islamic Azad University, Bonab, Iran
3 - Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
4 - Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran

Received: 2021-03-18 Accepted : 2021-05-15 Published : 2021-09-23

Keywords: Company stability, financial efficiency, sustainability model,

Abstract :

Managers today deal with complex and unique social, environmental, technological and market trends. Managers are still hesitant to come up with sustainable strategies because they believe the cost outweighs the benefits. Studies show that sustainability practices have a positive effect on business performance. Therefore, the purpose of this study is the sustainability model of the company based on the financial efficiency model based on the P-VAR model. Based on this goal, data related to 91 companies of Tehran Stock Exchange in the period 1390 to 1398 were analyzed. The research variables include 4 variables (profitability, efficiency, debt management and asset management) and secondary indicators in a total of 14 indicators. Data analysis was performed based on secondary variables and indicators. The results of the P-VAR model showed that the interaction between the variables of profitability, efficiency, debt management and asset management is small. Therefore, the mentioned variables do not have much effect on each other. Also, in the long run, these effects either decrease or do not increase enough. This small amount of interaction between variables is also related to the model used in the research.