scholarly journals Testing relationships between firm size and perceptions of growth and profitability: An investigation into the practices of Australian ICT SMEs

2016 ◽  
Vol 22 (5) ◽  
pp. 680-701 ◽  
Author(s):  
Áron Perényi ◽  
Andrey Yukhanaev
Keyword(s):  
Firm Size ◽  
Firm Growth ◽  
Positive Relationship ◽  
Empirical Studies ◽  
High Growth ◽  
Entrepreneurial Success ◽  
Resource Based View ◽  
Trade Off ◽  
Trade Offs ◽  
Profit Growth

AbstractGibrat’s Law mandates the independence of firm size and growth, while the resource-based view of the firm implies a positive relationship between firm size and profits, to be concluded in a profit–growth trade-off. Empirical studies of entrepreneurial success however, have demonstrated firms’ ability to reach a state of high growth and profitability, despite the trade-offs encapsulated within the profit–growth nexus. Upon assessing the relationships between past profitability, current firm growth and size in Australian ICT SMEs, results demonstrate positive relationships between all three indicators. This suggests that profitability can be considered the most important precursor of entrepreneurial success, and also that successful businesses do not suffer from the trade-offs implied by theory.

scholarly journals Towards Extending Dividend Puzzle Debate: What Motivates Distribution of Corporate Earnings in Tanzania?

2020 ◽  
Vol 8 (1) ◽  
pp. 18
Author(s):  
Josephat Lotto
Keyword(s):  
Firm Size ◽  
Firm Growth ◽  
Dividend Policy ◽  
Stock Exchange ◽  
High Growth ◽  
Dar Es Salaam ◽  
Corporate Managers ◽  
Financial Firms ◽  
Corporate Earnings ◽  
Control Tool

This paper investigates the determinants of dividend policy in Tanzania. The study employed a panel data of non-financial firms listed on the Dar es Salaam Stock Exchange (DSE) for the period 2008–2017. The paper reports profitability, liquidity, firm size, leverage, firm growth, previous dividend, and GDP as the major determinants of corporate dividend policy. According to the results, leverage, firm growth, and GDP are negatively related to dividend payout ratio while firm size, profitability, liquidity, and lagged dividend are positively related to dividend policy. More specifically, large-sized firms, highly profitable firms, and firms who paid dividend in previous years are more likely to consider paying dividend. However, payment of dividend will all depend on whether the firm is liquid enough to afford that. On the other hand, high-growth and leveraged firms would not probably consider paying dividend, and will, therefore, opt saving money to finance their expansion and honor their debt obligations. Following these results, corporate managers are advised to consider preferences of investors towards developing corporate dividend policy; to strive paying dividend whenever economically viable (as it signals the firm’s reputation), and to limit excessive borrowing to protect firms from getting into financial meltdown (although borrowing is considered a control tool for agency-related problems).

scholarly journals Heterotrophic eukaryotes show a slow-fast continuum, not a gleaner–exploiter trade-off

2020 ◽  
Vol 117 (40) ◽  
pp. 24893-24899
Author(s):  
Thomas Kiørboe ◽  
Mridul K. Thomas
Keyword(s):  
Positive Relationship ◽  
Ingestion Rate ◽  
Negative Relationship ◽  
Large Mammals ◽  
Ecological Processes ◽  
Trade Off ◽  
Trade Offs ◽  
Wide Range ◽  
Fast Gradient ◽  
Using Data

Gleaners and exploiters (opportunists) are organisms adapted to feeding in nutritionally poor and rich environments, respectively. A trade-off between these two strategies—a negative relationship between the rate at which organisms can acquire food and ingest it—is a critical assumption in many ecological models. Here, we evaluate evidence for this trade-off across a wide range of heterotrophic eukaryotes from unicellular nanoflagellates to large mammals belonging to both aquatic and terrestrial realms. Using data on the resource acquisition and ingestion rates in >500 species, we find no evidence of a trade-off across species. Instead, there is a positive relationship between maximum clearance rate and maximum ingestion rate. The positive relationship is not a result of lumping together diverse taxa; it holds within all subgroups of organisms we examined as well. Correcting for differences in body mass weakens but does not reverse the positive relationship, so this is not an artifact of size scaling either. Instead, this positive relationship represents a slow–fast gradient in the “pace of life” that overrides the expected gleaner–exploiter trade-off. Other trade-offs must therefore shape ecological processes, and investigating them may provide deeper insights into coexistence, competitive dynamics, and biodiversity patterns in nature. A plausible target for study is the well-documented trade-off between growth rate and predation avoidance, which can also drive the slow–fast gradient we observe here.

scholarly journals Technological innovativeness and growth: a study of small scale manufacturing firms in Lagos State

2019 ◽  
Vol 17 (4) ◽  
pp. 39-53
Author(s):  
Chinazor Franca Obunike ◽  
Ama Aka Udu
Keyword(s):  
Regression Analysis ◽  
Firm Size ◽  
Firm Growth ◽  
Positive Relationship ◽  
Employment Growth ◽  
Manufacturing Firms ◽  
Small Scale ◽  
Dependent Variables ◽  
Lagos State ◽  
The Relationship

The study has the general objective to determine the extent of the relationship between technological innovativeness and firm growth using small scale manufacturing firms in Lagos State. The independent variable of technological innovativeness was operationalized into product-oriented innovativeness and process-oriented innovativeness, while the dependent variables of firm growth were operationalized into sales growth, employment growth, growth in firm size and market shares growth. This study employs exploration correlational research design. The sample population of a small scale enterprise in Lagos State accounts for eleven thousand and forty-four (11,044). Yamane’s formula was used to get the sample size of three hundred and eighty-six (386), this was approximated to the nearest hundred to have 400 for equal distribution. Data gathered for this study was analyzed using the Pearson’s Product Moment Correlation analysis in order to determine the relationship between them and a simple linear regression analysis to establish the extent of relationship between them using statistical Package for Social Science (SPSS) version 2.3. The correlation statistic shows that the linkage between the independent and dependent variables was low to moderate that product-oriented innovativeness shows a moderate positive relationship with sales and employment growth, while the process-oriented innovativeness shows low positive relationship with firm size thus allowing for regression analysis.

Adaptive trade-offs in fish energetics and physiology: insights from adaptive differentiation among juvenile salmonids

2020 ◽  
Vol 77 (7) ◽  
pp. 1243-1255 ◽  
Author(s):  
Jordan Rosenfeld ◽  
Jeff Richards ◽  
Dave Allen ◽  
Travis Van Leeuwen ◽  
Gauthier Monnet
Keyword(s):  
Rainbow Trout ◽  
Coho Salmon ◽  
Environmental Gradients ◽  
High Growth ◽  
Growth Efficiency ◽  
Foraging Strategy ◽  
Trade Off ◽  
Active Metabolism ◽  
Trade Offs ◽  
Adaptive Differentiation

Juveniles of different salmonid species often co-exist along environmental gradients, making them a useful model for identifying dominant trade-off axes and their stability within a biological hierarchy (e.g., from individuals to populations to species). In this perspective, we use multivariate trade-offs among juvenile coho salmon (Oncorhynchus kisutch) and rainbow trout (Oncorhynchus mykiss) as a case study to explore broader-scale patterns of trait association. Multivariate ordination identified a dominant trade-off axis between high growth, consumption, and growth efficiency versus high aerobic scope and active metabolism among individual juvenile rainbow trout and three ecologically divergent rainbow trout populations. This pattern suggests a dominant trade-off between growth and active metabolism among individuals and populations, facilitated by simple developmental controls on increased energy intake (larger digestive tract, potentially more risky foraging behavior). In contrast, the adaptive trade-off differentiating species appears to have shifted to maximizing growth and consumption (rainbow trout) versus maximizing growth efficiency (coho), based on evolved differences in foraging strategy and digestive physiology. The generality of these patterns remains uncertain, but trade-offs related to growth efficiency may be an underappreciated dimension of adaptive differentiation in fishes, and their relationship to digestive strategy and active metabolism warrants further investigation.

scholarly journals Information Technology and Entrepreneurship Development in Africa

2021 ◽  
pp. 239-242
Author(s):  
Nzwirashe Rejoyce Magomana ◽  
Chrispen Maireva
Keyword(s):  
Information Technology ◽  
Positive Relationship ◽  
New Technologies ◽  
Empirical Studies ◽  
Entrepreneurial Success ◽  
Entrepreneurship Development

This paper aimed to provide an overview of how information technology has an impact on entrepreneurship development in Africa. Findings from empirical studies led into the conclusion that there is a positive relationship between the use of information technology and the development of entrepreneurship in Africa. The paper recommends that governments may provide enough funds to the entrepreneurs in order to ensure the new technologies are made use of effectively by all entrepreneurs which in turn will facilitate the entrepreneurial success.

scholarly journals Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms

2020 ◽  
Vol 12 (9) ◽  
pp. 3883 ◽  
Author(s):  
Huu Manh Nguyen ◽  
Thi Huong Giang Vuong ◽  
Thi Huong Nguyen ◽  
Yang-Che Wu ◽  
Wing-Keung Wong
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Model Tests ◽  
Pecking Order ◽  
Trade Off ◽  
Dividend Payout ◽  
The Impact

Our study investigates Chinese manufacturing firms listed on both the Shanghai and the Shenzhen Stock Exchanges. These firms follow the pecking order or trade-off theories in their capital structure choices. Using panel data from the Taiwan Economic Journal and quantile regression, we construct three models to compare the two theories. Our first model tests the impact of profitability, tangible asset, firm size, and investment opportunities on leverage; our second model adds the dividend payout ratio to test the robustness of the first model; and our third model tests how leverage, profitability, firm size, and dividend variables affect a firm’s investments. From the results of all the models used in our study, we find a negative relationship between leverage and both profitability and the dividend payout ratio and a positive relationship between leverage and growth in a firm’s investments. We also find a negative relationship between dividends, firm size, and growth in a firm’s investments and a positive relationship between investment capital and profitability. The overall results indicate that the capital structure decisions of Chinese manufacturing firms are best explained by the pecking order theory.

The Nature of Firm Growth

2021 ◽  
Vol 111 (2) ◽  
pp. 547-579
Author(s):  
Vincent Sterk ◽  
Petr Sedláček ◽  
Benjamin Pugsley
Keyword(s):  
Firm Size ◽  
Firm Growth ◽  
High Growth ◽  
Firm Dynamics ◽  
Dynamics Model ◽  
Firm Level ◽  
Firm Size Distribution ◽  
Ex Post ◽  
Ex Ante ◽  
Macroeconomic Effects

About one-half of all startups fail within five years, and those that survive grow at vastly different speeds. Using Census microdata, we estimate that most of these differences are determined by ex ante heterogeneity rather than persistent ex post shocks. Embedding such heterogeneity in a firm dynamics model shows that the presence of ex ante heterogeneity (i) is a key determinant of the firm size distribution and firm dynamics, (ii) can strongly affect the macroeconomic effects of firm-level frictions, and (iii) helps understand the recently documented decline in business dynamism by showing a disappearance of high-growth startups (“gazelles”) since the mid-1980s. (JEL D22, D24, E24, J23, L11, M13)

Dual Goals for Speed and Accuracy on the Same Performance Task

2012 ◽  
Vol 11 (3) ◽  
pp. 118-126 ◽  
Author(s):  
Olive Emil Wetter ◽  
Jürgen Wegge ◽  
Klaus Jonas ◽  
Klaus-Helmut Schmidt
Keyword(s):  
Memory Scanning ◽  
Performance Task ◽  
Performance Tasks ◽  
Trade Off ◽  
Test Experiment ◽  
Trade Offs ◽  
New Finding ◽  
Sternberg Paradigm ◽  
Speed Accuracy ◽  
Speed And Accuracy

In most work contexts, several performance goals coexist, and conflicts between them and trade-offs can occur. Our paper is the first to contrast a dual goal for speed and accuracy with a single goal for speed on the same task. The Sternberg paradigm (Experiment 1, n = 57) and the d2 test (Experiment 2, n = 19) were used as performance tasks. Speed measures and errors revealed in both experiments that dual as well as single goals increase performance by enhancing memory scanning. However, the single speed goal triggered a speed-accuracy trade-off, favoring speed over accuracy, whereas this was not the case with the dual goal. In difficult trials, dual goals slowed down scanning processes again so that errors could be prevented. This new finding is particularly relevant for security domains, where both aspects have to be managed simultaneously.

The Effects of Decision Time on Perceptions of Decisions and Decision Makers in (Moral) Trade-Off Scenarios

2019 ◽  
Author(s):  
Anna Katharina Spälti ◽  
Mark John Brandt ◽  
Marcel Zeelenberg
Keyword(s):  
Decision Process ◽  
Decision Time ◽  
Decision Makers ◽  
Process Information ◽  
Total N ◽  
Trade Off ◽  
Financial Gain ◽  
Trade Offs ◽  
Sacred Values ◽  
Moral Context

People often have to make trade-offs. We study three types of trade-offs: 1) "secular trade-offs" where no moral or sacred values are at stake, 2) "taboo trade-offs" where sacred values are pitted against financial gain, and 3) "tragic trade-offs" where sacred values are pitted against other sacred values. Previous research (Critcher et al., 2011; Tetlock et al., 2000) demonstrated that tragic and taboo trade-offs are not only evaluated by their outcomes, but are also evaluated based on the time it took to make the choice. We investigate two outstanding questions: 1) whether the effect of decision time differs for evaluations of decisions compared to decision makers and 2) whether moral contexts are unique in their ability to influence character evaluations through decision process information. In two experiments (total N = 1434) we find that decision time affects character evaluations, but not evaluations of the decision itself. There were no significant differences between tragic trade-offs and secular trade-offs, suggesting that the decisions structure may be more important in evaluations than moral context. Additionally, the magnitude of the effect of decision time shows us that decision time, may be of less practical use than expected. We thus urge, to take a closer examination of the processes underlying decision time and its perception.

Predicting Undesired Treatment Outcome in Mental Healthcare: Machine Learning Study (Preprint)

2019 ◽  
Author(s):  
Kasper Van Mens ◽  
Joran Lokkerbol ◽  
Richard Janssen ◽  
Robert de Lange ◽  
Bea Tiemens
Keyword(s):  
Machine Learning ◽  
Treatment Outcome ◽  
Mental Health Treatment ◽  
Mental Healthcare ◽  
Machine Learning Algorithms ◽  
Gradient Boosting ◽  
Trade Off ◽  
Trade Offs ◽  
Outcome Monitoring ◽  
Extreme Gradient Boosting

BACKGROUND It remains a challenge to predict which treatment will work for which patient in mental healthcare. OBJECTIVE In this study we compare machine algorithms to predict during treatment which patients will not benefit from brief mental health treatment and present trade-offs that must be considered before an algorithm can be used in clinical practice. METHODS Using an anonymized dataset containing routine outcome monitoring data from a mental healthcare organization in the Netherlands (n = 2,655), we applied three machine learning algorithms to predict treatment outcome. The algorithms were internally validated with cross-validation on a training sample (n = 1,860) and externally validated on an unseen test sample (n = 795). RESULTS The performance of the three algorithms did not significantly differ on the test set. With a default classification cut-off at 0.5 predicted probability, the extreme gradient boosting algorithm showed the highest positive predictive value (ppv) of 0.71(0.61 – 0.77) with a sensitivity of 0.35 (0.29 – 0.41) and area under the curve of 0.78. A trade-off can be made between ppv and sensitivity by choosing different cut-off probabilities. With a cut-off at 0.63, the ppv increased to 0.87 and the sensitivity dropped to 0.17. With a cut-off of at 0.38, the ppv decreased to 0.61 and the sensitivity increased to 0.57. CONCLUSIONS Machine learning can be used to predict treatment outcomes based on routine monitoring data.This allows practitioners to choose their own trade-off between being selective and more certain versus inclusive and less certain.

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