Use analysis of internal growth rate and sustainable growth rate and its relation to performance
DOI:
https://doi.org/10.61841/v1havn86Keywords:
sustainable growth, internal growth, performanceAbstract
The study aims to study the relationship between the rate of sustainable growth and internal growth rate and the improvement of the performance of the company and the degree of relationship between these variables. For this purpose, a sample of the listed companies was used in the Iraqi Stock Exchange for 22 companies for the period 2010-2017 through use of the financial statements of the sample companies. The research focused on the data related to the internal rate of return (EGR), sustainable rate of return (SGR) General revenue using analytical statistical methods and methods such as the Mann-Whitney U and Spearman correlation tests and using the SPSS statistical program. V22. Linear regression analysis was used to examine the correlation between the deviation of the actual growth rate from the sustainable growth rate, return on assets (ROA), price to book value (P / B), community ratios and rapid rate. The study showed that there is a correlation between ROA and IGR and SGR and is not significant with the general rate of return. The results also showed a relationship and impact between most operational efficiency indicators, IGR and SGR.
Downloads
References
Aktas, Z., Kaya, N. Ozlale, U. (2010). Coordination between monetary policy and fiscalpolicy for an inflation targeting emerging market. Retrieved from https./'/ideas.repec.org/a/eee/jimfin/v29y2010i1p123-138.html.
ancial%20Management%2010th%20Edition%20(2011).pdf
Ashla, A. (2008). Sustainable growth rates: refining a measure. Strategic Change, 17(5/6), 207-214.
doi:10.1002/jsc.827.
Bhunia, A., & Sarkar, R. (2011). A study of financial distress based on MDA. Journal of Management
Research, 3(2), 1-11. doi:10.5296/jmr.v3i2.549.
Comett, M. M., Adair, T. A, & Nofsinger, J. (2012). Finance.' Application & Theory. New York, NY:
McGraw-Hill.
Gardner, John C.; McGowan Jr., Carl B.; Moeller, Susan E. (2011). Using accounting information for financial
planning and forecasting: An application of the sustainable growth model using Coca-Cola. Journal of Business Case
Studies, 7(5).
Gibson, C. H. (2011). Financial Reporting & Analysis: Using Financial Accounting Information. Mason, NJ:
South-Western.
Higgins R. C., 2008, Analysis for financial management, 9th ed. (McGraw-Hill, Inc, New York, NY).
Higgins, R. C. (2011). Analysis for Financial Management 10th Edition (10th ed.). Retrieve from
http://dspace.elib.ntt.edu.vn/dspace/bitstream/123456789/7693/1/Analysis%20for%20Fi
Jegers, M. (2003). The sustainable growth rate of Non-profit organizations: The effect of efficiency,
profitability and capital structure. Financial Accountability & Management, 19(4), 309. doi:10.1111/1468-0408.00176.
June, L. (2012). Prediction of corporate bankruptcy from 2008 through 2011. Journal of Accounting & Finance
(2158-3625), 12(1), 31-41.
Kasilingam, R. R., & Jayabal, G. G. (2012). Profitability and solvency analysis of a manufacturing company
using Dupont and Altman models. BVIMR Management Edge, 5(2), 53-64.
Korol, T., & Korodi, A. (2010). Predicting bankruptcy with the use of macroeconomic variables. Economic
Computation & Economic Cybernetics Studies & Research, 44(1), 201-219.
Levin, Ross, Chapter 12: (2005) “Finance and Growth: Theory and Evidence,” in Handbook of Economic
Growth, Vol. 1A by Philippe Aghion and Steven N Durlauf, Elsevier, 866-934.
Loughran, T., & McDonald, B. (2011). When is a liability not a liability? Textual analysis, dictionaries, and
10-Ks. Journal of Finance, 66(1), 35-65.
Nasrollah Amouzesh,(2011)" Sustainable Growth Rate and Firm Performance : Evidence From Iran Stock
Exchange' International Journal of Business and Social Science Vol. 2 No. 23 >Special Issue – December 2011.
Nathan Smart , (2016) ,Examining Cooperative Sustainable Growth Rates: Who Is Growing Brok, Master A
THESIS B.S., Kansas State University.43-54.
Palenu, K. G. and Healy, P. M. (2008). Business analysis & valuation.` Using Financial Statements. Mason,
HO: Thomson/South-Westem.
Phillips, M., Anderson, S. J., & Volker, J. (2010). Understanding small private retail firm growth using the
sustainable growth model. Journal of Finance and Accountancy, 3, 1.
Raisch, S, & von Krogh, G. (2007). Navigating a path to smart growth. M/T Sloan Management Review, 48(3),
65. doi: 1250414251.
Raiyani, Jagadish R.(2011).Performance analysis with sustainable growth rate:A case study international
Journal of Research in Commerce, Economics and Management.No,1,Issue1,pp .118-123
Ross A. Stephen, Westerfield W. Randolph, Jordan D. Bradford, (2011) FUNDAMENTALS OF corporate
finance, the mcgraw-hill/irwin.
Ross A. Stephen, Westerfield W. Randolph, Jordan D. Bradford, (2013) FUNDAMENTALS OF
corporate finance, the mcgraw-hill/irwin.
Ross A. Stephen, Westerfield W. Randolph, Jordan D. Bradford, (2016) FUNDAMENTALS OF
corporate finance, the mcgraw-hill/irwin
Sehoon, K., & Sang Buhm, H. (2010). Duration analysis of corporate bankruptcy in th Presence of competing
risks. Applied Economics Letters, 17(15), 1513-1516
Sormunen, N., & Laitinen, T. (2012) , Late financial, distress process stages and financial ratios : Evidence for auditors going concern evaluation . Liiketaloudellinen Aikakauuskirja (1), 41- 69 .
Sunny Onyiri , (2014) ,Predicting Financial Distress using Altman Z- score and the sustainable growth rate, dissertation Doctor business management , northcentral university
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
