Financial Sustainability: Exploring the Influence of the Triple Bottom Line Economic Dimension on Firm Performance

Elisabete Nogueira (), Sofia Gomes and João M. Lopes
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Elisabete Nogueira: Research on Economics, Management and Information Technologies, REMIT, Portucalense University, Rua Dr. António Bernardino Almeida, 541-619, P 4200-072 Porto, Portugal
Sofia Gomes: Research on Economics, Management and Information Technologies, REMIT, Portucalense University, Rua Dr. António Bernardino Almeida, 541-619, P 4200-072 Porto, Portugal
João M. Lopes: Instituto Superior Miguel Torga, 3000-132 Coimbra, Portugal

Sustainability, 2024, vol. 16, issue 15, 1-17

Abstract: Triple Bottom Line (TBL) may be one of the best weapons in one of today’s biggest business challenges, achieving sustainability. Despite the importance of the economic dimension of TBL for companies’ competitiveness, financial sustainability remains undervalued in research and business management practises. Thus, there is a need to deepen the knowledge about the relationship between sustainable business practises and the economic performance of firms. This study aims to analyse the influence of the economic dimension of TBL on firm financial performance. Three multiple linear regression models were estimated by the generalised method of moments for a sample of 70,057 Portuguese companies grouped according to their size. The results reveal that the economic dimension of TBL influences the financial performance of companies in a positive way, both at the level of value creation and from the perspective of company continuity. The study uses accounting indicators as the representatives of the economic dimension of the TBL and its consideration in conjunction with the stakeholder theory. The use, monitoring, and evaluation of the financial indicators of value and continuity that translate the application of TBL in the financial performance of companies may lead them to achieve financial sustainability.

Keywords: triple bottom line; economic dimension; financial sustainability; business performance; business strategy; stakeholder theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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