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Does ESG Predict Business Failure in Brazil? An Application of Machine Learning Techniques

Year: 2024
Type: article
Abstract: The aim of this study is to explore the influence of Environmental, Social, and Governance (ESG) factor on business failure in Brazil by employing advanced machine learning techniques. We collected data from 235 companies and conducted Principal Component Analysis (PCA) on 40 variables already used in the bankruptcy failure literature, resulting in the formation of 7 variables that predict business failure. The results indicate that ESG factor significantly predict business failure in Brazil. This study has implications for investors, policymakers, and business leaders, offering a more precise tool for risk assessment and strategic decision-making.
Source: Risks
DOI: 10.3390/risks12120185
Institutions: Sultan Zainal Abidin University, University of Gujrat, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology, University of Lisbon, University of Évora, Centro de Estudos e Formação Avançada em Gestão e Economia, Universidade da Madeira
Language: English
Subfield: Accounting
Open Access status: gold
Estimated APC paid: $2,046
OpenAlex ID: W4404693453
FWCI: 2.015
Cites: 120
Cited by: 2
Related to: 10