The Mechanisms of Creating Value vs. Financial Security of Going Concern—Sustainable Management

Abstract

The subject of this research study is the quantification of corporate value creation in relation to the level of the financial security of a company’s functioning. The research aims to compare the two mechanisms. Assessments concern the degree of the balancing of effects in the context of value creation and financial security sustainable management. The analysed entities comprise all the manufacturing enterprises in Poland in 2007–2018, included in public statistical data. In light of the above, the study is unique in character, comprising the broadest possible range of entities. The results support the main hypothesis—which is subordinated to the study’s adopted main target—as well as five sub-hypotheses. The study employs a multifaceted logit model of financial security, and the multifaceted value measure. The paper examines value drivers as well as financial security explanatory variables. The study makes use of cause and effect analysis, object relocation analysis and an analysis of the variability and clustering of objects. On the basis of the detailed research findings, the following rule was demonstrated: there is a directly proportional relationship between the effects of the value creation process and the ensuring of financial security in manufacturing enterprises (compliance with the sustainable management principle).