Enhancing corporate financial sustainability prediction through advanced risk analytics and real-time data insights

Abstract

The research seeks to determine how real-time data perspectives and improved risk analytics can promote the forecast of corporate financial sustainability. In the present scenario, certain sectors face barriers in upholding financial health, making it essential to measure the forces of long-term financial transparency. While prior studies have investigated factors of financial sustainability, some research holistically associates both real-time operational information and advanced risk metrics throughout different sectors to measure their joint predictive ability. The research addresses such gaps by exploring the effect of particular real-time data perspectives (Total Current Assets, Turnover, Total Capital Expenditures, Net Debt per Share, EBIT Margin) and risk analytics (Operating Expenses, Total Debt, Total Non-current Liabilities, Total Current Liabilities) on corporate financial sustainability (Retained Earnings, Free Cash Flow, Net Income after Tax, and Gross Profit Margin). Panel data from 59,230 companies spanning 2009–2025 were analyzed using Fixed Effects regression with Driscoll-Kraay standard errors to account for heteroskedasticity, autocorrelation, and cross-sectional dependence, multicollinearity tests, correlation matrix, and descriptive statistics. The results indicate that liability structure and operational efficiency are crucial determinants of CFS. Total Current Liabilities (TCL) and Operating Expenses (OE) negatively impact financial sustainability, emphasizing the importance of short-term liquidity management and cost control. In contrast, strategically managed Total Debt Funds (TD) and Total Non-Current Liabilities (TNCL) positively contribute to CFS, highlighting the role of long-term debt in promoting financial resilience. Additionally, Total Current Assets (TCA), Turnover (TO), and Total Capital Expenditures (TCE) positively influence sustainability, whereas EBIT Margin (EBITM) shows a marginally negative effect, and Net Debt Per Share (NDPS) is statistically insignificant. The research suggests that corporate decision-makers prefer practical liability management, strategically support long-term revenue and capital development, and improve operational efficiency to stimulate effective long-term financial health.