Sustainable Growth Rate: Evidence from Agricultural and Food Enterprises

Momčilović, Mirela; Begović, Sanja Vlaović; Tomašević, Stevan; Ercegovac, Dajana

doi:10.7595/management.fon.2015.0017

Cited by 5 publications

(5 citation statements)

References 8 publications

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“…Sustainable growth indicates annual sales growth that is consistent with firms' financing policy (Higgins 1977). Based on firms' financing policy, managers will be able to determine the maximum sales level of their firms (Momčilović et al 2015) that will not negatively affect their cash flows (Ashta 2008). Firms' financing policy is related to their decisions not to issue new shares and maintain their debt to equity (DER) ratio at certain levels.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Working capital management and its influence on profitability and sustainable growth

Nastiti¹,

Atahau²,

Supramono³

2019

BTP

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This study aims to test the effect of working capital management on firms’ profitability and the effect of this relationship on sustainable growth. Our sample firms are 136 manufacturing firms listed in the Indonesian Stock Exchange from 2010 to 2017. We use data panel regression with fixed effect estimation model to analyze our data. The results demonstrate that working capital significantly affects firms’ profitability. However, working capital management does not exhibit a significant direct influence on sustainable growth but a significant indirect influence through firms’ profitability. Thus, this study suggests that firms need to manage their working capital to increase their profits and eventually to achieve sustainable growth. This study contributes by including sustainable growth in the analysis of the relationship between working capital and firm performance. In addition, this study will likely contribute to managers in efforts to increase sustainable growth for their enterprises through working capital management.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Working capital management and its influence on profitability and sustainable growth

Nastiti¹,

Atahau²,

Supramono³

2019

BTP

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“…It seems that the Serbian government has recognized the importance of food and agricultural sectors for the development of the whole country. However, even though above mentioned data could lead to a conclusion that Serbia has comparative advantages in the field of food sector, Momčilović et al (2015) indicated that suitable circumstances for the sustainable growth were limited or there was no real sustainable growth in this sectors during the previous period. , Year 67, No.…”

Section: Methodsmentioning

confidence: 96%

Does sustainability matter in mergers and acquisitions?: The case of the Serbian food industry

Denčić-Mihajlov

2020

Ekonomika poljoprivrede

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This paper investigated key areas in which environmental, social and governance issues may be important in M&A transactions, with a particular emphasis on the Serbian food industry. The analysis was conducted using a sample of 11 realized M&As in the Republic of Serbia with the food producers as target companies and is based on the data acquired from the targets` annual reports and web sites. The analysed transactions, that have been randomly elected, belong to different legal types of M&A: acquisition of asset, acquisition of shares, tender offer and merger/consolidation. Following the classification of sustainability issues, two types of M&A in the Serbian food industry have been distinguished: one enables the acquirer to build the presence in the key segments with sustainability products in line with modern health trends, while the other helps the buyer to improve synergies and consolidate leadership position by acquiring target with a recognized sustainability profile and credibility.

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“…Furthermore, the sector of activity that the company operates in also has a significant impact on the SGR [24][25][26][27][28][29], and so does the company size [7], and these characteristics require adapted operational organization strategies.…”

Section: Corporate Sustainability Growth and Investment Performancementioning

confidence: 99%

Companies’ Sustainable Growth, Accounting Quality, and Investments Performances. The Case of the Romanian Capital Market

et al. 2020

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The paper analyzes the influence of sustainable growth (SGR) as a reflection of the manner of strategic business organization, particularly in the quality of reported financial information (magnitude of discretionary accruals—DAC) as an expression of the ethical attitude adopted by companies in the entity–investor relationship, on the investors’ decisions, substantiated in the performance level of the shares held. Using models consecrated in the literature, the results reflect a significant influence, both in the case of separate testing of the two factors (SGR and DAC), and in the case of the conjugated action thereof, on investment performance. The relations were also tested by introducing certain control variables into the analysis, such as: the intangible ratio, quick ratio, company size, as well as the SGR sensitivity function of the level of information quality. In the case of financial information quality, specific indicators from the two consecrated value relevance testing models by Ohlson (1995) and Easton and Harris (1991) were used as control variables. The obtained results are robust, preserving the sense and intensity of the influences. However, in the case of testing for the influence of information quality on share price, it was noticed an insignificant relation, associated with the situation in which, to execute some speculative transactions, investors particularly interpreted conjunctural factors. The study contributes to the development of the specialty literature by highlighting the role of internal growth and information quality as determinant factors in the investors’ analyses, while also offering a potentially practical tool for assessing the opportunity of making placements in the capital of companies.

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Sustainable Growth Rate: Evidence from Agricultural and Food Enterprises

Cited by 5 publications

References 8 publications

Working capital management and its influence on profitability and sustainable growth

Working capital management and its influence on profitability and sustainable growth

Does sustainability matter in mergers and acquisitions?: The case of the Serbian food industry

Companies’ Sustainable Growth, Accounting Quality, and Investments Performances. The Case of the Romanian Capital Market

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