Artikel
Predictors of firm growth in India: An exploratory analysis using accounting information
This paper aims at identifying relevant financial factors which critically affects firm revenue growth. We specifically focus on the dynamic nature of such factors across up or down-market cycles and also for different scales and size of business. The study uses annual data of 17 accounting and financial variables for a sample of 1,450 Indian firms which exist continuously between 2003 and 2014 and generate a framework for identification of critical factors which affect firm revenue growth. We employ a variable reduction technique via principal component analysis (PCA), and then use the "principal factors" identified thereon, in a logistic regression approach to develop such a framework. The study finds efficiency in management of current assets and capital (both short- and long-term) to be the most critical factors, determining the firm revenue growth in Indian context. The relative importance of capital deployment efficiency is more for small firms than for large firms whereas asset management efficiency is the most critical factor in larger firms. Long-term solvency supersedes all other factors during market downturns. These findings may have important implications for firms and its stakeholders as a priori knowledge on the importance of critical factors regarding firm's revenue growth could enable the mangers to support them in their decision-making process.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 6 ; Year: 2018 ; Issue: 1 ; Pages: 1-26 ; Abingdon: Taylor & Francis
- Classification
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Wirtschaft
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Business Administration: General
Accounting and Auditing: General
- Subject
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firm performance
revenue growth
financial information
logistic regression
- Event
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Geistige Schöpfung
- (who)
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Mishra, Sibanjan
Deb, Soumya Guha
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
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Abingdon
- (when)
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2018
- DOI
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doi:10.1080/23322039.2018.1553571
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Mishra, Sibanjan
- Deb, Soumya Guha
- Taylor & Francis
Time of origin
- 2018
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