IDEAS home Printed from https://ideas.repec.org/a/blg/msudev/v16y2024i2p82-88n7.html

A New Conceptual Framework For Assessing Corporate Financial Performance. A Sustainable Approach

Author

Listed:
  • RUSU Radu

    (Lucian Blaga University of Sibiu, Romania)

  • OPREAN-STAN Camelia

    (Lucian Blaga University of Sibiu, Romania)

Abstract

This study sets out to establish a new definition for the concept of corporate financial performance, mostly associated with the concept of corporate economic growth, highlighting the prevalence of the types of capital such as those specific to natural, human and social. These types of capital comprise resources such as: renewable and non-renewable natural resources (forests, oil deposits), the individual’s health, well-being and knowledge, respectively social relationships based on mutual trust. The method of definition used comprises the sufficiency predicates and implies the development and transformation of four such predicates. Lastly, mathematic relationships are proposed in order to better evaluate the company’s conceptual corporate financial performance, with regard to its consumption of resources specific to those of natural, human and social capital. Nevertheless, the mathematic models imply the existence of some so-called artificial realities, which represent conditions that are not fully reflected in the actual socioeconomic environment.

Suggested Citation

  • RUSU Radu & OPREAN-STAN Camelia, 2024. "A New Conceptual Framework For Assessing Corporate Financial Performance. A Sustainable Approach," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(2), pages 82-88, December.
    • Handle: RePEc:blg:msudev:v:16:y:2024:i:2:p:82-88:n:7
    DOI: https://doi.org/10.54989/msd-2024-0017
    as

    Download full text from publisher

    File URL: https://msdjournal.org/wp-content/uploads/vol16issue2-7.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.54989/msd-2024-0017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ahmet Kaya & Dragan Pamucar & Hasan Emin Gürler & Mehmet Ozcalici, 2024. "Determining the financial performance of the firms in the Borsa Istanbul sustainability index: integrating multi criteria decision making methods with simulation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-44, December.
    2. Mohamed Abdel-Basset & Weiping Ding & Rehab Mohamed & Noura Metawa, 2020. "An integrated plithogenic MCDM approach for financial performance evaluation of manufacturing industries," Risk Management, Palgrave Macmillan, vol. 22(3), pages 192-218, September.
    3. Sonali Bhattacharya & Dipasha Sharma, 2019. "Do environment, social and governance performance impact credit ratings: a study from India," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 35(3), pages 466-484, June.
    4. Karl V. Lins & Henri Servaes & Ane Tamayo, 2017. "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis," Journal of Finance, American Finance Association, vol. 72(4), pages 1785-1824, August.
    5. Cuili Qian & Louise Y. Lu & Yangxin Yu, 2019. "Financial analyst coverage and corporate social performance: Evidence from natural experiments," Strategic Management Journal, Wiley Blackwell, vol. 40(13), pages 2271-2286, December.
    6. repec:eme:ijoes0:ijoes-09-2018-0130 is not listed on IDEAS
    7. Majid Jamal Khan & Faiza Saleem & Shahab Ud Din & Muhammad Yar Khan, 2024. "Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging market," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    8. Gaurav Jyoti & Ashu Khanna, 2021. "Does sustainability performance impact financial performance? Evidence from Indian service sector firms," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(6), pages 1086-1095, November.
    9. Ion Ionascu & Mihaela Ionascu & Elena Nechita & Marian Sacarin & Mihaela Minu, 2022. "Digital Transformation, Financial Performance and Sustainability: Evidence for European Union Listed Companies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(59), pages 1-94.
    10. Liyuan Zheng & Ling Ye & Mengjiao Wang & Yingdi Wang & Haiwei Zhou, 2022. "Does Water Matter? The Impact of Water Vulnerability on Corporate Financial Performance," IJERPH, MDPI, vol. 19(18), pages 1-19, September.
    Full references (including those not matched with items on IDEAS)

    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. Yousaf Muhammad & Dey Sandeep Kumar, 2022. "Best proxy to determine firm performance using financial ratios: A CHAID approach," Review of Economic Perspectives, Sciendo, vol. 22(3), pages 219-239, September.
    2. Leslier Valenzuela-Fernández & Christian Espinosa-Méndez & Lisgrey Barrera Legoburo, 2026. "When does sustainability fail? The contrasting impact of ESG on entrepreneurial brand value and financial performance," International Entrepreneurship and Management Journal, Springer, vol. 22(2), pages 1-39, June.
    3. Jongwon Park & Sunyoung Kim & Albert Tsang, 2023. "CEO Personal Hedging and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 182(1), pages 199-221, January.
    4. Lili Ding & Zhongchao Zhao & Lei Wang, 2020. "Executive Incentives Matter for Corporate Social Responsibility under Earnings Pressure and Institutional Investors Supervision," Sustainability, MDPI, vol. 12(6), pages 1-22, March.
    5. Pochara Arayakarnkul & Pattanaporn Chatjuthamard & Sirimon Treepongkaruna, 2022. "Board gender diversity, corporate social commitment and sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1706-1721, September.
    6. Trinh, Vu Quang & Trinh, Hai Hong & Li, Teng & Vo, Xuan Vinh, 2024. "Climate change exposure, financial development, and the cost of debt: Evidence from EU countries," Journal of Financial Stability, Elsevier, vol. 74(C).
    7. Zheng, Guohong & He, Feng & Xiao, Zhongyi & Han, Wei, 2025. "Chinese corporate governance research over the last decade (2014 - 2023)," International Review of Financial Analysis, Elsevier, vol. 97(C).
    8. Galip Cihan Yalçın & Karahan Kara & Hamide Özyürek & Vladimir Simic & Dragan Pamucar, 2026. "Benchmarking the financial performance of initial public offering companies via a Z score normalization-based MPSI-RBNAR hybrid approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-38, December.
    9. Ehsan Poursoleyman & Amin Pourrezaei Nav & Gholamreza Mansourfar & Hamzeh Didar, 2025. "How Does Corporate Information Environment Influence CSR?," IJFS, MDPI, vol. 13(3), pages 1-21, July.
    10. Kara, Karahan & Yalçın, Galip Cihan & Çetinkaya, Aslı & Simic, Vladimir & Pamucar, Dragan, 2024. "A single-valued neutrosophic CIMAS-CRITIC-RBNAR decision support model for the financial performance analysis: A study of technology companies," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    11. Chang, Xin & Jin, Yaling & Yang, Endong & Zhang, Wenrui, 2025. "Corporate taxes and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 94(C).
    12. Rodrigo Zeidan, 2022. "Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3028-3039, November.
    13. Ľuboš Pástor & M Blair Vorsatz & Jeffrey Pontiff, 0. "Mutual Fund Performance and Flows during the COVID-19 Crisis," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 791-833.
    14. Ishtiaq Uz Zaman Chowdhury & Zoya Safdar & Muhammad Adnan & Fatima Batool & Waqas Ali & Muhammad Usama Abbasi & Khushnoor Khan, 2023. "Strategic Financial Management: Exploring the Interplay between Strategic Orientation and Financial Decision-Making in Corporate Settings," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 231-237.
    15. Fogel, Kathy & Jandik, Tomas & McCumber, William R., 2018. "CFO social capital and private debt," Journal of Corporate Finance, Elsevier, vol. 52(C), pages 28-52.
    16. Nicolaus Grochola & Sebastian Schlütter, 2025. "Discretionary decisions in capital requirements under Solvency II," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 50(2), pages 405-443, April.
    17. Oehler, Andreas & Neuss, Charlotte, 2025. "ESG disclosure vs. ESG ratings: Consistent information value?," International Review of Financial Analysis, Elsevier, vol. 107(C).
    18. Arru Brunella & Delrio Federico & Furesi Roberto & Pulina Pietro & Fabio Albino Madau, 2025. "Role of environmental, social and governance disclosure in business profitability and cost of debt: An analysis of small Southern Italian agri‐food businesses," Agribusiness, John Wiley & Sons, Ltd., vol. 41(3), pages 856-895, July.
    19. Leon Zolotoy & Don O’Sullivan & Keke Song, 2021. "The Role of Ethical Standards in the Relationship Between Religious Social Norms and M&A Announcement Returns," Journal of Business Ethics, Springer, vol. 170(4), pages 721-742, May.
    20. Zhang, Cheng & Ho, Kung-Cheng & Yan, Cheng & Gong, Yujing, 2023. "Societal trust and firm-level trust: Substitute or complement? An international evidence," International Review of Financial Analysis, Elsevier, vol. 86(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:blg:msudev:v:16:y:2024:i:2:p:82-88:n:7. 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: Camelia Oprean-Stan (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    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.