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Economic Analysis: Theory and Practice
 

Identifying business efficiency factors: Random forest modeling

Vol. 23, Iss. 7, JULY 2024

Received: 16 May 2024

Received in revised form: 10 June 2024

Accepted: 22 June 2024

Available online: 30 July 2024

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: G30, M14, O16, O30

Pages: 1225–1239

https://doi.org/10.24891/ea.23.7.1225

Idelya R. BADYKOVA Kazan National Research Technological University (KNRTU), Kazan, Republic of Tatarstan, Russian Federation
Idelia.badykova@gmail.com

https://orcid.org/0000-0002-9072-3856

Subject. The article considers factors affecting the financial performance of a business.
Objectives. The aim is to perform an empirical analysis of financial performance determinants, including the levels of innovative activity of enterprises and corporate social responsibility.
Methods. The study employs general theoretical methods (synthesis, deduction and induction), quantitative and empirical methods, like analysis by the random forest ensemble learning method with subsequent interpretation of results by applying Shapley values, using Python libraries.
Results. I reviewed factors affecting the financial efficiency of business, focusing on enterprises' investment in innovation and corporate social responsibility as tools for achieving growth. Using the complex method of random forest modeling, I concluded that it is difficult to assess the role of each indicator separately, and the cumulative influence of factors on the resulting indicator is important.
Conclusions. Business needs to improve the quality of innovation and corporate social responsibility development strategies, considering them as the most promising areas for achieving sustainable development.

Keywords: financial efficiency, innovation, corporate social responsibility, random forest

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