Footnote:
In: Pakistan Business Review, October 2017 Issue, Volume 19, Issue 3
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 10, 2017 erstellt
Description:
This research has investigated the sustainability of growth of nonfinancial firms in case of Pakistan. For this purpose, explanatory variable of earnings per share and total assets turnover were used as controlling factors and liquidity, size and cash flows were used as independent variables. Balanced panel of 27 firms with 24 annual time dimensions has been used from 1988 to 2011. Model specification criteria were in favour of pooled least squares but due to heterogeneity of firms, fixed effect model was opted for. The results of research were robust against internal growth but not robust to sustainable growth indicating that, in case of Pakistan, the leverage impact, which is the key difference between internal growth and sustainable growth might be playing some unexplained role for the growth of nonfinancial firms. For steady, regular and internal growth, liquidity and cash generation ability are playing a significant role but fail to support growth in the long run and in a sustainable way