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

Authors

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.

Keywords