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A study on sustainable growth rate for firm survival
Author(s) -
Mamilla Rajesh
Publication year - 2019
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/jsc.2269
Subject(s) - sustainable growth rate , position (finance) , business , dividend , life cycle hypothesis , competitive advantage , dividend policy , economics , industrial organization , finance , marketing , macroeconomics
Understanding where a company is in its life cycle is important. The sustainable growth rate (SGR) is an indicator of what stage a company is in, in its life cycle. The position often determines corporate finance objectives such as what sources of financing to use, dividend pay‐out policies, or overall competitive strategy. The purpose of this study is to analyze the actual growth rate as well as SGR and investigate the overall effect of selected independent variables on SGR.