The relationship between the application of corporate sustainability policy and the weighted average cost of capital: examples of European countries

• Autorzy: Gniadkowska-Szymańska Agata , Papiernik-Wojdera Marzena

Identyfikatory

DOI

10.29119/1641-3466.2024.202.8

• Języki publikacji: EN

Abstrakty

EN

Purpose: This publication aims to verify whether Van Horne coefficient model affects company growth, as expressed by the WACC. Design/methodology/approach: The study was conducted on a group of nonfinancial companies listed on: the Warsaw Stock Exchange (WIG index), The Frankfurt Stock Exchange (DAX index), The Paris Stock Exchange (CAC index) and the Stockholm Stock Exchange (OMX Stockholm index) from 01/01/2000 - 31/12/2021. Van Horne's SGR model was used as an indicator of the sustainable growth of the firm. The analysis related to WACC and condition assessment of analysed companies is presented as OLS and panel models parameter estimations. The study was carried out using cross-sectional regression analysis and panel data. Several models were estimated using the OLS method, including different sets of independent variables. Findings: In the analysis, it was found that the VSGR coefficient has a negative impact on the WACC for companies from all the analysed markets, i.e. the better the implementation of the company's sustainable development policy measured by the VSGR index, the lower the WACC of the company may record. These results were also not confirmed in panel studies with fixed effects, which allows us to conclude that these relationships are very weak. Research limitations/implications: Further research should expand the analysis of firms by size and stage of development considering value growth. In the next research stage, more extensive analysis and robustness tests will be performed to address endogeneity issues such as measurement errors, confounding factors, simultaneity, etc., and the analysis will be performed using panel data with observations over time. Practical implications: The results of the analysis can support the managers of companies in making decisions aimed at increasing the company's value in conditions of sustainable growth. Originality/value: The study's novelty is to establish the relationship between the company's sustainable development policy measured by the VSGR index and the weighted average cost of capital.

Słowa kluczowe

EN

corporate sustainability policy; weighted average cost of capital; Van Horne's SGR model

PL

polityka zrównoważonego rozwoju przedsiębiorstw; średnioważony koszt kapitału; model SGR Van Horne'a

• Wydawca: Wydawnictwo Politechniki Śląskiej
• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2024
• Tom: z. 202
• Strony: 127--137
• Opis fizyczny: Bibliogr. 28 poz.

Twórcy

autor

Gniadkowska-Szymańska Agata

• Faculty of Economics and Sociology, University of Lodz

• https://orcid.org/0000-0002-7321-3360

autor

Papiernik-Wojdera Marzena

• Faculty of Economics and Sociology, University of Lodz

• https://orcid.org/0000-0002-2872-0881

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