IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i17p10731-d900491.html
   My bibliography  Save this article

Sustainable Growth Rate Analysis in Eastern European Companies

Author

Listed:
  • Bojana Vuković

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Teodora Tica

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Dejan Jakšić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

Abstract

As a prerequisite for long-term strategic and financial planning, sustainable growth is a future-oriented concept that was based on the company’s long-term survival with value creation. The primary aim of this paper is to determine the indicators that have an influence on sustainable company growth rate during the five-year period of 2016 to 2020. Panel regression analysis was used in order to thoroughly analyze the sustainable growth variables. Our analysis was based on a sample of 675 observations of companies operating in the Eastern European market. The obtained results showed that liquidity and leverage have a negative impact on sustainable growth, while profitability has a positive impact on sustainable growth. The impact of these variables was statistically significant. The obtained results may serve as an effective company tool to improve the target sustainable growth rate. They provide support for the company’s management to improve its business and ensure healthy growth without major financial difficulties, as well as to promote a sustainable business that will increase the market value of the company. Moreover, all internal and external stakeholders will be provided with insight into the reality of growth plans and opportunities for future sustainable growth, which creates a basis for measuring a company’s business prosperity and predicting its long-term performance.

Suggested Citation

  • Bojana Vuković & Teodora Tica & Dejan Jakšić, 2022. "Sustainable Growth Rate Analysis in Eastern European Companies," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10731-:d:900491
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/17/10731/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/17/10731/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shih‐Fang Lo & Her‐Jiun Sheu, 2007. "Is Corporate Sustainability a Value‐Increasing Strategy for Business?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 345-358, March.
    2. Bojana Vuković & Kristina Peštović & Vera Mirović & Dejan Jakšić & Sunčica Milutinović, 2022. "The Analysis of Company Growth Determinants Based on Financial Statements of the European Companies," Sustainability, MDPI, vol. 14(2), pages 1-17, January.
    3. Andrzej Raszkowski & Bartosz Bartniczak, 2019. "Sustainable Development in the Central and Eastern European Countries (CEECs): Challenges and Opportunities," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    4. Beata Zyznarska-Dworczak, 2018. "The Development Perspectives of Sustainable Management Accounting in Central and Eastern European Countries," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    5. Michał Comporek & Magdalena Kowalska & Anna Misztal, 2021. "The sustainable development of transport enterprises in the context of macroeconomic conditions. The case of Central and Eastern European countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 226-247, March.
    6. World Bank, 2019. "Doing Business 2019," World Bank Publications - Books, The World Bank Group, number 30438.
    7. Levent Ataünal & Ali Osman Gürbüz & Asli Aybars, 2016. "Does High Growth Create Value for Shareholders? Evidence from S&P500 Firms," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(3), pages 25-38.
    8. Ewa Cichowicz & Ewa Rollnik-Sadowska, 2018. "Inclusive Growth in CEE Countries as a Determinant of Sustainable Development," Sustainability, MDPI, vol. 10(11), pages 1-23, October.
    9. Farouq Altahtamouni & Ahoud Alfayhani & Amna Qazaq & Arwa Alkhalifah & Hajar Masfer & Ryoof Almutawa & Shikhah Alyousef, 2022. "Sustainable Growth Rate and ROE Analysis: An Applied Study on Saudi Banks Using the PRAT Model," Economies, MDPI, vol. 10(3), pages 1-12, March.
    10. Wu, Xueping & Au Yeung, Chau Kin, 2012. "Firm growth type and capital structure persistence," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3427-3443.
    11. Gheorghe H. Popescu, 2014. "FDI and Economic Growth in Central and Eastern Europe," Sustainability, MDPI, vol. 6(11), pages 1-15, November.
    12. Magdalena Kinga Stawicka, 2014. "Determinants Of Foreign Direct Investment Inflows In Central And Eastern European Coun-Tries," Oeconomia Copernicana, Institute of Economic Research, vol. 5(2), pages 7-20, June.
    13. Mihajlo Jakovljevic & Arcadio A. Cerda & Yansui Liu & Leidy García & Yuriy Timofeyev & Kristijan Krstic & John Fontanesi, 2021. "Sustainability Challenge of Eastern Europe—Historical Legacy, Belt and Road Initiative, Population Aging and Migration," Sustainability, MDPI, vol. 13(19), pages 1-18, October.
    14. Lars Leszczensky & Tobias Wolbring, 2022. "How to Deal With Reverse Causality Using Panel Data? Recommendations for Researchers Based on a Simulation Study," Sociological Methods & Research, , vol. 51(2), pages 837-865, May.
    15. Nur LISTIANI & Supramono SUPRAMONO, 2020. "Sustainable Growth Rate: Between Fixed Asset Growth and Firm Value," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(1), pages 147-159, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Isnurhadi & Sulastri & Yulia Saftiana & Ferry Jie, 2022. "Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries," Sustainability, MDPI, vol. 15(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naumoski Aleksandar, 2022. "Financial Policy and Companies’ Sustainable Growth," Economic Themes, Sciendo, vol. 60(3), pages 281-301, September.
    2. Andrzej Raszkowski & Bartosz Bartniczak, 2019. "Sustainable Development in the Central and Eastern European Countries (CEECs): Challenges and Opportunities," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    3. Gábor Horváth & Attila Bai & Sándor Szegedi & István Lázár & Csongor Máthé & László Huzsvai & Máté Zakar & Zoltán Gabnai & Tamás Tóth, 2023. "A Comprehensive Review of the Distinctive Tendencies of the Diffusion of E-Mobility in Central Europe," Energies, MDPI, vol. 16(14), pages 1-29, July.
    4. Elżbieta Sobczak & Bartosz Bartniczak & Andrzej Raszkowski, 2020. "Aging Society and the Selected Aspects of Environmental Threats: Evidence from Poland," Sustainability, MDPI, vol. 12(11), pages 1-22, June.
    5. Sassi Boudemagh Souad & Korti Rafika, 2022. "Citizen Participation: A Matter of Competency," European Journal of Social Sciences Articles, Revistia Research and Publishing, vol. 5, July - De.
    6. Nahapetyan Yervand, 2019. "The benefits of the Velvet Revolution in Armenia: Estimation of the short-term economic gains using deep neural networks," Central European Economic Journal, Sciendo, vol. 6(53), pages 286-303, January.
    7. Liu, Haiyun & Islam, Mollah Aminul & Khan, Muhammad Asif & Hossain, Md Ismail & Pervaiz, Khansa, 2020. "Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis," Research in International Business and Finance, Elsevier, vol. 53(C).
    8. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    9. Edamisan Stephen Ikuemonisan & Taiwo Ejiola Mafimisebi & Igbekele Amos Ajibefun & Adeyose Emmanuel Akinbola & Olanrewaju Peter Oladoyin, 2022. "Analysis of Youth’s Willingness to Exploit Agribusiness Opportunities in Nigeria with Entrepreneurship as a Moderating Variable," Businesses, MDPI, vol. 2(2), pages 1-20, April.
    10. Didier, Tatiana & Levine, Ross & Llovet Montanes, Ruth & Schmukler, Sergio L., 2021. "Capital market financing and firm growth," Journal of International Money and Finance, Elsevier, vol. 118(C).
    11. Alena Kocmanová & Marie Pavláková Dočekalová & Tomáš Meluzín & Stanislav Škapa, 2020. "Sustainable Investing Model for Decision Makers (Based On Research of Manufacturing Industry in the Czech Republic)," Sustainability, MDPI, vol. 12(20), pages 1-27, October.
    12. Hanna Dudek & Joanna Myszkowska-Ryciak & Agnieszka Wojewódzka-Wiewiórska, 2021. "Profiles of Food Insecurity: Similarities and Differences across Selected CEE Countries," Energies, MDPI, vol. 14(16), pages 1-19, August.
    13. Wang, Huanming & Ran, Bing, 2022. "How business-related governance strategies impact paths towards the formation of global cities? An institutional embeddedness perspective," Land Use Policy, Elsevier, vol. 118(C).
    14. Thomas Kaspereit & Kerstin Lopatta, 2013. "The Value Relevance of SAM's Corporate Sustainability Ranking and GRI Sustainability Reporting in the European Stock Markets," ZenTra Working Papers in Transnational Studies 19 / 2013, ZenTra - Center for Transnational Studies, revised Oct 2013.
    15. Coustaury, Camille & Jeannot, Elias & Moreau, Adele & Nietge, Clotilde & Maharani, Asri & Richards, Lindsay & Präg, Patrick, 2023. "Subjective socioeconomic status and self-rated health in the English Longitudinal Study of Aging: A fixed-effects analysis☆☆We thank the anonymous reviewers of Social Science & Medicine for their help," Social Science & Medicine, Elsevier, vol. 336(C).
    16. Suwan Lu & Guobin Fang & Mingtao Zhao, 2023. "Towards Inclusive Growth: Perspective of Regional Spatial Correlation Network in China," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    17. Aref M. Eissa & Arafat Hamdy & Ahmed Diab, 2024. "Governmental Ownership, Board Gender Diversity, and ESG Performance: Evidence from an Emerging Market," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    18. O. Martins, 2019. "Developing the Housing Sector in Nigeria – A Regulator’s Perspective," Economic and Financial Review, Central Bank of Nigeria, vol. 57(4), December.
    19. Viju Raghupathi & Jie Ren & Wullianallur Raghupathi, 2020. "Identifying Corporate Sustainability Issues by Analyzing Shareholder Resolutions: A Machine-Learning Text Analytics Approach," Sustainability, MDPI, vol. 12(11), pages 1-24, June.
    20. Qian, Wei & Schaltegger, Stefan, 2017. "Revisiting carbon disclosure and performance: Legitimacy and management views," The British Accounting Review, Elsevier, vol. 49(4), pages 365-379.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10731-:d:900491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.