The relationship between the application of the sustainable growth policy of the enterprise and the growth of the enterprise on the capital market: examples of European countries

Purpose: The primary aim of this study is to examine whether the Van Horne coefficient model impacts company growth, as indicated by the EPS indicator. Design/methodology/approach: The study was conducted on non-financial companies listed on the WIG, DAX, and OMX indices. The main tool of the analysis is the Van Horn sustainable growth model and its correlation with the EPS of the companies. Findings: The study found that the VSGR coefficient has a negative impact on the 3-year growth of companies listed on stock exchanges in Germany and Sweden. Similar results were obtained in the 5-year period study. For the Polish market, the VSGR coefficient is not statistically significant (OLS model). However, the study highlighted the significant role of the ROE coefficient and the level of company assets in shaping EPS. Research limitations/implications: At this stage, the study compares the Polish market to two other selected markets, which serve more as indicators of the future for us rather than as a comparative group. This perspective on the researched issue is significant but requires further investigation, taking into account other markets, including those similar to the Polish market. It is also important to extend the research to include longer time horizons in the models. Practical implications: The conducted study aligns with the current and important trend of research on sustainable development, which is a priority element in building company strategies within the European Union. Given the lower level of development of the Polish market compared to the German or Scandinavian markets, the findings for the comparative markets provide an insight into the situation we may encounter in Poland if we choose a similar pattern of actions and development. Originality/value: The conducted analyses are the first to use the Van Horne model on such a broad sample, indicating the potential for implementing sustainable development strategies in Polish companies with the aim of achieving development according to the model observed in Western European countries.