Non-Financial Capital and Its Influence on the Financial Viability of the Company

Most existing models for assessing company financial viability ignore non-financial factors. This research is an attempt to empirically estimate the impact of non-Financial capital on financial viability, taking into account the cross-country and cross-industry peculiarities. Based on the results of theoretical and practical researches review, the key components of non-Financial capital of companies were identified. Testing of the suggested econometric Probit-models confirmed the hypotheses about the comparable effect of financial and non-financial factors on companies financial position changes. The growth of Intellectual and Social capital efficiency, Corporate environmental responsibility commitment also contributes to increasing the financial viabiliy and reducing bankruptcy probability. 83 pp. of text, 12 tabl., 2 fig., 90 ref. KEYWORDS: Financial viability, non-Financial capital, Intellectual capital, Social capital, Corporate Environmental Responsibility, Stakeholder theory, Agency theory.