Conceptual Framework of Financial Sustainability based on Government Policies Interventions: A Modelling Approach

Ms Sarah Ahmed PhD Scholar); Syed Muhammad Ali Tirmizi

Abstract:

Corporates around the world are developing policies and strategies which can increase their financial health and life. This study aims to propose an optimised model by using Artificial Neural Networks (ANN) for financial sustainability. Furthermore, government policies intervention framework is developed to conduct a pre and post policy intervention analysis. Predictive Analytics are used to assess which policies are useful for long term survival of the firms. As an example, to further the concept for this study 379 manufacturing sector firms of Pakistan are taken as a sample, and government policies developed over the period of 2005-2019 are included. The manufacturing sector of Pakistan has 25 sub sectors. Vector Auto Regression (VAR) and Structural Vector Auto Regression SVAR are used to test the model. Moreover, Neural Networks (NN) are further applied for prediction and to get the optimal model. This would be helpful in predicting the financial sustainability of firms moreover, predicting the outcome of policies.

research from:

• Foundation University - Faculty of Management Sciences

Year:

2021

Type of Publication:

Article

Keywords:

Financial Sustainability; neural network

Journal:

International Journal of Innovation, Creativity and Change.

Volume:

15

Number:

8