Profitability and Firm Size–Growth Relationship in Construction Companies in Malaysia From 2003 to 2010

Rasiah, Devinaga; Tong, David Yoon Kin; Kim, Peong Kwee

doi:10.1142/s0219091514500143

Cited by 11 publications

(10 citation statements)

References 29 publications

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“…These study findings also offer several specific managerial implications. The growth of small businesses is a significant issue, since it directly influences their survival (Hölzl, 2014; Rasiah et al , 2014). This study identified 16 growth factors.…”

Section: Discussionmentioning

confidence: 99%

Identification of growth factors for small firms: evidence from hotel companies on an island

Yazıcı

Köseoğlu

Okumuş

2016

JOCM

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Purpose The purpose of this paper is to mainly investigate what factors drive growth for independent hotel firms on an island. Design/methodology/approach Two steps were followed. First, to identify hotels demonstrated significant growth; 92 independent hotels in North Cyprus were analyzed via a self-report questionnaire. Second, key growth factors were examined in five hotels showing the growth over years among the independent hotels via in-depth, semi-structured interviews, focus group interviews, and observations. Findings The study findings revealed 16 important growth factors for hotels, including active risk taking, education, family history, networks of contacts, other business interests, family investing friends, key employee partners, customer concentration, autonomy, innovativeness, proactiveness, competitive aggressiveness, location, desire to succeed, age of founders, and state support where are strong, weak, and interrelated relationships among these factors. These findings allow factors to be categorized into new groups, namely, strategic and tactical factors. The research findings unveil new factors referred to as “political conflict – pursuing different strategy and opportunities,” importance of second generations affect and entrepreneur’s metacognitive strategies, “informal networking.” Research limitations/implications More research should also be undertaken for entrepreneurs or managers who formulate and implement strategies to enter new markets or to tackle turbulent and/or unstable environments. Practical implications This study reveals that one factor on its own cannot influence the growth of hotels. Rather, successful growth depends on the entrepreneur’s ability to combine all factors in harmony. Originality/value Given that there is limited empirical evidence on the growth of independent hotels on islands, this study made an important attempt to contribute to the entrepreneurship literature in the hospitality management and family business fields via micro-level approaches concerning the factors influencing hotels’ growth on an island. This is one of the first studies presenting and discussing empirical findings on growth factors for small hotels on an island, and brings a new perspective by grouping factors as strategic and tactical factors.

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Section: Discussionmentioning

confidence: 99%

Identification of growth factors for small firms: evidence from hotel companies on an island

Yazıcı

Köseoğlu

Okumuş

2016

JOCM

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“…Los investigadores de la dinámica empresarial, economía industrial, la gestión estratégica, la contabilidad y las finanzas han tratado de identificar las fuentes de variación de la rentabilidad de las empresas (Goddard, Tavakoli y Wilson, 2005). Diferentes autores (Aulová et al, 2019;Floros & Voulgaris, 2016;Lososová & Zdeněk, 2014;Prijadi & Desiana, 2017;Rasiah et al, 2014;Spitsin et al, 2020) han planteado sus teorías acerca de la rentabilidad en las empresas y sus determinantes aplicados a diferentes sociedades, sectores y enfoques. Por ejemplo, factores económicos del rendimiento empresarial (externos a la organización) y los factores organizativos (comportamiento financiero de la empresa y adecuación del entorno) han demostrado en investigaciones anteriores que operan de forma independiente y que los factores internos están asociados de forma más significativa y directa con el rendimiento empresarial (Appiah-Adu et al, 2001).…”

Section: Revisión De La Literaturaunclassified

“…Este estudio contribuye a la literatura, ya que examina cuál es el comportamiento financiero de las microempresas de un país emergente. Habitualmente, los estudios de este tipo se han llevado a cabo en el contexto de Estados Unidos, Malasia, Suecia, Polonia, Uganda, Nigeria, Perú y otros países (Adekunle, 2011;Janda et al, 2013;Muñoz et al, 2014;Rasiah et al, 2014;Schreiner & Woller, 2003;Ssebunya et al, 2019;Yazdanfar et al, 2013;Vargas-Vega et al, 2020).…”

Section: Introductionunclassified

Análisis de rentabilidad, endeudamiento y liquidez de microempresas en Ecuador

Farías

Pacheco

Correa-Soto

2021

retos

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Las microempresas representan un componente significativo para el progreso económico de Ecuador. Esta investigación analiza y compara indicadores financieros como la rentabilidad financiera, el endeudamiento y la liquidez corriente de las microempresas de la provincia del Guayas con las del resto de provincias de Ecuador. El análisis utilizó una metodología cuantitativa de tipo descriptiva de diseño transversal para 13 768 microempresas de la provincia del Guayas y 16 093 microempresas del resto de las provincias de Ecuador que reportaron su información financiera a la Superintendencia de Compañías, Valores y Seguros al año 2019. Para comparar estos grupos se realizó una prueba t para muestras independientes con varianzas desiguales. Los resultados de esta investigación indican que, con un nivel de confianza del 95 %, el promedio de endeudamiento y la liquidez corriente media son mayores en la provincia del Guayas mientras que las microempresas del resto de Ecuador reportan una mejor rentabilidad financiera promedio. A pesar de que la provincia del Guayas tiene el mayor porcentaje de microempresas en el país, no es condición suficiente para concluir que sus indicadores financieros, en promedio, son mejores que los del resto de Ecuador. Esta investigación pretende ser un aporte al desarrollo de líneas de trabajo que contribuyan a la elaboración y diseño de políticas que ayuden a la supervivencia y desempeño empresarial de las microempresas.

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“…In contrast, a study performed on Norwegian salmon farms in the period 2000–2014 [ 28 ] found a negative relationship. However, a study of Malaysian [ 29 ] construction companies found no relationship between the two variables. The same is true for the relationship between indebtedness and profitability.…”

Section: Introductionmentioning

confidence: 99%

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Farías

Martínez²,

Martín-Cervantes³

2022

PLoS ONE

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The natural stone sector is an important driver of the Spanish and Italian economies, which underwent internationalization after the financial crisis of 2008 as part of a survival and development strategy. This article aims to study the financial and economic profitability of this sector in the two leading European production countries, as well as its determinants. For this purpose, the economic-financial data of a sample composed of 453 companies (203 Spanish and 250 Italian) from 2015–2019 were analyzed using the multiple linear regression methodology. To address the problems of possible endogeneity and omission of variables in the model, the dependent variable was used as a regressor with one and two lags, and panel data with fixed effects were considered after performing the Hausman test. The results show significant differences between the two countries, with higher profitability in Italy. Company size, company growth (measured as the change in assets), and the variation in the country’s GDP all positively affected profitability. At the same time, the level of indebtedness showed a negative relationship. The country’s inflation rate and gender diversity in top management were shown to be non-relevant variables. The research conducted indicates that, to increase profitability, Spanish and Italian companies in the natural stone sector should undergo mergers in order to grow in size, increase efficiency in the use of assets, reduce their dependence on external financing, and promote equity capital. In addition, Italian companies should reduce the average period of payment to suppliers to lower deferral costs, and boost exports to become less dependent on the country’s domestic economy.

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Profitability and Firm Size–Growth Relationship in Construction Companies in Malaysia From 2003 to 2010

Cited by 11 publications

References 29 publications

Identification of growth factors for small firms: evidence from hotel companies on an island

Identification of growth factors for small firms: evidence from hotel companies on an island

Análisis de rentabilidad, endeudamiento y liquidez de microempresas en Ecuador

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

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