Open AccessAN EXPLORATORY FACTOR ANALYSIS OF FIRMS ENDOGENOUS GROWTH MEASURES
Author(s) -
Leonard Tchuta,
Fei Xie
Publication year - 2019
Publication title -
humanities and social sciences reviews
Language(s) - English
Resource type - Journals
ISSN - 2395-6518
DOI - 10.18510/hssr.2019.7525
Subject(s) - panel data , endogenous growth theory , pooling , stock (firearms) , business , equity (law) , economics , financial economics , industrial organization , econometrics , human capital , mechanical engineering , artificial intelligence , computer science , law , political science , engineering , economic growth
Purpose: This study attempts to standardize firm endogenous growth measures by performing exploratory factor analysis on nine firm endogenous growth measures (equity book value, equity market value, working capital, stock R&D investments, stock advertisement investment, stock capital asset investment, operating expenses, sales revenue, and the number of employees).
Methodology: Data was generated by pooling a panel dataset of 116 firms and13 years timespan data.
Main Findings: The result of the analysis reveals three underlying firm growth factors (namely firm financials, operations, and capabilities) representing the initial nine growth measures.
Implications/Applications: The results of this research can be used as the bases for further research in firm endogenous growth model analysis.