Sustainable Growth Rate and Its Determinants: A Study on Some Selected Companies in India

Mukherjee, Tutun

doi:10.18535/afmj/v3i1.10

Cited by 16 publications

(17 citation statements)

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“…In general, previous studies confirm the obtained results (Huang and Zhang [ 8 ], Utami and Gunawan [ 19 ], Rahim [ 16 ], Mukherjee and Som [ 12 ], Nastiti, Atahau, and Supramono [ 13 ]). In addition, the modification of the company growth model proposed by the authors significantly increased the sample, due to the fact that the calculation of SGR4 became possible for companies that do not have dividend payments.…”

Section: Discussionsupporting

confidence: 83%

“…The indicator of the level of sustainable growth allowed us to determine the possibility of maintaining sales growth without additional funding [ 3 ]. This enabled Mukherjee, Som to confirm that a steady growth rate is a sales growth rate that a company can maintain without raising additional capital or changing its financial policy [ 12 ].…”

Section: Methodsmentioning

confidence: 99%

“…A sample of 115 companies from 2010–2015 was used for this purpose. As a result, there was a significant positive correlation between liquidity, profitability and leverage with the steady growth rates of Indian companies [ 12 ].…”

Section: Methodsmentioning

confidence: 99%

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Financial Aspects of Companies Sustainable Growth

Frolova

Борисова

Lazarev

2020

Lecture Notes in Networks and Systems

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The article is devoted to the problems of evaluating the companies growth. The authors study the theory and methodology of approaches to the concept of sustainable growth and variations of factorological dependencies that form the value of decision-making indicators to ensure the necessary growth depending on the companies financial results. The authors justify the choice of indicators and growth models based on criteria, the main of which is the rate of profit reinvestment as the basis of companies financial stability. The level of profit reinvestment primarily depends on the life cycle of companies, and the choice of the optimal growth rate, determined by the growth model, is the basis for sustainable development of companies. The universality of the models is confirmed by the possibility of their application regardless of the availability of companies shares, dividend payments and organization forms, which allowed the authors to reduce the restrictions on the sample. The models were tested on the example of the largest mining companies. The dynamics of average values of growth indicators reflected changes in general market trends, which confirms that the growth of large system-forming companies is the main factor in the growth of the state’s economy as a whole.

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Section: Discussionsupporting

confidence: 83%

Section: Methodsmentioning

confidence: 99%

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Financial Aspects of Companies Sustainable Growth

Frolova

Борисова

Lazarev

2020

Lecture Notes in Networks and Systems

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“…Further, profitability plays an important role in sustainable growth (Shapiro and Balbirer 2000). Several studies, such as Amouzesh et al (2011), Mukherjee and Sen (2018) and Manaf et al (2018) support this argument by demonstrating the effect of profitability on firms' sustainable growth. It then can be predicted that working capital management affects sustainable growth through firms' profitability.…”

Section: Introductionmentioning

confidence: 93%

Working capital management and its influence on profitability and sustainable growth

Nastiti¹,

Atahau²,

Supramono³

2019

BTP

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This study aims to test the effect of working capital management on firms’ profitability and the effect of this relationship on sustainable growth. Our sample firms are 136 manufacturing firms listed in the Indonesian Stock Exchange from 2010 to 2017. We use data panel regression with fixed effect estimation model to analyze our data. The results demonstrate that working capital significantly affects firms’ profitability. However, working capital management does not exhibit a significant direct influence on sustainable growth but a significant indirect influence through firms’ profitability. Thus, this study suggests that firms need to manage their working capital to increase their profits and eventually to achieve sustainable growth. This study contributes by including sustainable growth in the analysis of the relationship between working capital and firm performance. In addition, this study will likely contribute to managers in efforts to increase sustainable growth for their enterprises through working capital management.

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“…Intangible assets such as software and R&D are critical investments that sustain a firm's market presence in future years by reducing costs and increasing profits, and intangibles are strategic investments for the long-run growth path of firms [21]. The sustainable growth of a firm can be considered a comprehensive mechanism to evaluate the long-run sustainability of a firm [28]. On the other hand, investing in intangible assets is important for the knowledge economy because intangible assets containing information elements such as R&D, patents, or software rather than tangible assets play an important role in the sustainable growth of firms and firm value.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Intangible Assets and Sub-Components of Intangible Assets on Sustainable Growth and Firm Value: Evidence from Turkish Listed Firms

Ocak

Fındık

2019

Sustainability

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This study explores the effect of intangible assets and sub-components of intangible assets on sustainable growth and firm value in Turkey. The cumulative (i.e., aggregative) value of intangible assets of firms and sub-components of intangible assets were used as test variables in the current study. Further, intangible assets of the firms were divided into three sub-components using the classification of Corrado, Hulten and Sichel, namely computerized information and database, innovative property, and economic competence. Firms listed on Borsa İstanbul were analyzed to test the hypotheses. Two different measures of sustainable growth of firms and unique measure of firm value were used as dependent variables. The final sample includes 1353 observations for nine years between 2005–2013 in Turkey. Ordinary least square (OLS) and Heckman two-stage estimation procedures were employed to test the hypotheses. Estimation results of OLS and Heckman two-stage procedures show that the cumulative value of intangible assets affect the sustainable growth rates of firms and firm value positively. When the cumulative value of intangible assets was classified into three sub-components, both computerized information and database and economic competence impact the sustainable growth rates of firms and firm value.

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Sustainable Growth Rate and Its Determinants: A Study on Some Selected Companies in India

Cited by 16 publications

References 0 publications

Financial Aspects of Companies Sustainable Growth

Financial Aspects of Companies Sustainable Growth

Working capital management and its influence on profitability and sustainable growth

The Impact of Intangible Assets and Sub-Components of Intangible Assets on Sustainable Growth and Firm Value: Evidence from Turkish Listed Firms

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