Анализа одрживе стопе раста нефинансијских компанија које котирају на Бањалучкој берзи // A Sustainable Growth Rate Analysis of Non-Financial Companies Listed on the Banja Luka Stock Exchange

2018 ◽  
Vol 14 (24) ◽  
pp. 53
Author(s):  
Горан Радивојац ◽  
George Kester
Keyword(s):  
Growth Rate ◽  
Growth Rates ◽  
Asset Management ◽  
Financial Distress ◽  
Stock Exchange ◽  
Sustainable Growth ◽  
Financial Leverage ◽  
Rate Analysis ◽  
Sustainable Growth Rate ◽  
Banja Luka

Резиме: У свом истраживачком пројекту чије резултате објављујемо у овом чланку, прикупили смо одговарајуће податке, извршили њихову анализу и процијенили одрживост стопе раста нефинансијских компанија које котирају на службеном тржишту акција Бањалучке берзе. Одрживост раста сваке компаније можемо анализирати на неколико начина, али најједноставнији приступ подразумијева анализу максималне брзине раста прихода од продаје у контексту међусловљености и утицаја на профитабилност компаније, политику дивиденди, управљање имовином и финансијски левериџ. Приходи од продаје било које компаније не могу да расту по стопи већој од „одрживе” стопе раста, изузев ако је у кратком року раст подстакнут позитивним утицајем једног или више поменутих параметара повећања перформанси, или је раст стимулисан прибављањем додатног капитала. Summary: In this research project and paper, we propose to assess the sustainable growth rates of non-financial companies listed on the Banja Luka Stock Exchange. A company’s sustainable growth rate is the maximum rate its sales can grow, given the company’s profitability, earnings retention, asset management, and financial leverage. A company’s sales cannot grow at a rate higher than its sustainable growth rate unless one or more of these levers of performance increases or the company issues additional equity. Companies that grow at rates higher than their sustainable growth rates and finance the their asset growth with debt financing experience higher financial leverage that can lead to financial distress and ultimately bankruptcy.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

Sustainable growth rate of firms in financial distress

1995 ◽  
Vol 19 (2) ◽  
pp. 147-151 ◽  
Author(s):  
Harlan D. Platt ◽  
Marjorie B. Platt ◽  
Guangli Chen
Keyword(s):  
Growth Rate ◽  
Financial Distress ◽  
Sustainable Growth ◽  
Sustainable Growth Rate

scholarly journals ANALYSIS OF SUSTAINABLE GROWTH RATES OF COMPANIES INCLUDED IN THE MIXED HOLDING POWER UTILITY OF REPUBLIC OF SRPSKA

2021 ◽  
pp. 65-76
Author(s):  
Goran Radivojac ◽  
Aleksandra Krčmar
Keyword(s):  
Growth Rates ◽  
Stock Exchange ◽  
Financial Statements ◽  
Sustainable Growth ◽  
Power Utility ◽  
Operating Income ◽  
Holding Power ◽  
Net Profit ◽  
The Republic ◽  
Banja Luka

This paper analyzes selected data on the performance of companies that are part of the power utility Elektroprivreda Republike Srpske with the aim of determining their sustainable growth rates. The energy sector was chosen because of its importance both for the Republic of Srpska capital market (measured by the participation in the total market capitalization of the Banja Luka Stock Exchange and the basic Stock Exchange index) and the entire Republic of Srpska economy (measured by the participation in gross domestic product). The analysis considered data from published financial statements for 2019, with an emphasis on the following: operating assets, liabilities, capital, operating income and net profit. The dividend policy was also considered, but it was concluded in the paper that none of the observed companies paid dividends from profit for 2019 by the end of this analysis. The research results show that the rate of sustainable growth exceeds 1% in only one case, while in several other cases there are negative rates of sustainable growth caused by the loss in the observed period. Such facts could raise concerns, but also indicate possible directions for future actions in order to improve the performance of the considered companies.

scholarly journals PENGARUH PROFIT MARGIN, ASSETS TURNOVER DAN LEVERAGE TERHADAP SUSTAINABLE GROWTH RATE PADA PERUSAHAAN SEKTOR JASA YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2012

2015 ◽  
Vol 3 (1) ◽  
pp. 632
Author(s):  
Arim Nasim ◽  
Fetti Rizki Irnama
Keyword(s):  
Growth Rate ◽  
Service Sector ◽  
Stock Exchange ◽  
Sustainable Growth ◽  
Profit Margin ◽  
Normality Test ◽  
Sustainable Growth Rate ◽  
Asset Turnover ◽  
Independent Variable ◽  
Positive Effect

This study aims to determine the effect of Profit Margin, Assets Turnover and Leverage on Sustainable Growth Rate. The variables used are profit margin, asset turnover and leverage as independent variable and sustainable growth rate as dependent variable. This study also aims to describe the state of profit margin projected by Net Profit Margin (NPM), asset turnover proxied by Total Assets Turnover (TATO), leverage which is proxied by Debt to Equity Ratio (DER) and Sustainable Growth Rate (SGR) Service sector. This research was conducted on service sector companies listed in Indonesia Stock Exchange 2010-2012.Data obtained from website Bursa Efek Indonesia.Teknik data analysis used is multiple linear regression and use t-statistics to test the influence of each independent variable to variable Dependent partially.Previously done classical assumption test that includes data normality test, multicolinierity test, heteroskedastisitas test and autocorrelation test.Based on data normality test, multicolinierity test, heteroscedasticity test and autocorrelation test did not found any variables that deviate from the classical assumption.From the results of research Shows that profit margin positively affect sustainable growth rate, asset turnover have positive effect to sustainable growth rate, and leverage have positive effect to sustainable growth rate.

scholarly journals Corporate Sustainable Growth Rate: The Potential Impact of COVID-19 on Malaysian Companies

2020 ◽  
pp. 25-38
Author(s):  
Fauzias Mat Nor ◽  
Nur Ainna Ramli ◽  
Ainulashikin Marzuki ◽  
Norfhadzilahwati Rahim
Keyword(s):  
Growth Rate ◽  
Financial Distress ◽  
Retention Rate ◽  
Sustainable Growth ◽  
Estimation Model ◽  
Return On Equity ◽  
Factors Affecting ◽  
Business Context ◽  
Sustainable Growth Rate ◽  
Potential Impact

The COVID-19 pandemic and the economic slowdown have negatively impacted various industries and will cause losses, defaults in debt obligations, and significantly increase the risk of insolvency. An excessive level of debt could lead to unsustainable growth, financial distress, and insolvency. Sustainable growth rate (SGR) may have a significant impact on corporate financial distress. Sustainable growth in a business context is the maximum limit for a company to increase its revenue without depleting its financial resources. Sustainable growth rate depends on the earnings retention rate (R) and the return on equity (SGR = R × ROE). The purpose of this research is to investigate the factors affecting the SGR by segregating the positive and negative profitability of Shariah-compliant companies in Malaysia. Using STATA software, we conducted a static estimation model to analyse data from 181 Shariah-compliant companies in Malaysia collected from 2007 to 2016. The research based on ROE analysis by segregating positive and negative ROE as the potential impact of COVID-19 in Malaysia. For companies of positive ROE, the decrease in the dividend payout and the company’s efficiency, and an increase in profitability will increase the sustainable growth rate. The company with negative ROE shows that the decrease in leverage and an increase in the company’s profitability and the company’s efficiency will result in the increased company’s sustainable growth rate. This research can be a guide for companies to the potential or experimental impact of the COVID-19 pandemic either for the company that gains profit or faces the financial losses. This paper also provides an understanding of the corporate sustainable growth rate facing negative and positive profitability in Malaysia.

scholarly journals The Most Appropriate Sustainable Growth Rate Model For Managers And Researchers

2012 ◽  
Vol 28 (3) ◽  
pp. 481 ◽  
Author(s):  
M. M. Fonseka ◽  
Constantino García Ramos ◽  
Gao-liang Tian
Keyword(s):  
Growth Rate ◽  
Financial Distress ◽  
Sample Selection ◽  
Debt Maturity ◽  
Point Of View ◽  
Sustainable Growth ◽  
Significant Difference ◽  
Sustainable Growth Rate ◽  
Financial Characteristics ◽  
Dichotomous Variables

The objectives of this paper are to analyze whether there is a significant difference among widely used Higgins model and Van Horne model and whether these two competing sustainable growth rate models (SGR) estimate divergences in ways that are systematically related to variations in common financial characteristics. We find that Higgins SGR when used as continuous and dichotomous variables is more affected by variations in financial characteristics than Van Hornes model. This study confirms that Higgins and Van Hornes models are qualitatively and approximately the same in relation to most common financial characteristics of a firm. However, if the Higgins model is used to compute SGR, it would give higher SGR for more profitable firms than Van Hornes. A firm with higher leverage is given higher SGR in Van Hornes than Higgins. Variations of liquidity, debt maturity and financial distress are trivial in economic sense. Finally, we find that the both Higgins and Van Hornes models result in approximately same (less than 4%) loss in sample size and not induce more sample-selection bias. We suggest that Higgins and Van Hornes models are equally preferable from both the managers and researchers point of view.

scholarly journals Sustainable Growth and Liquidity on Profitability: A Study on Mining Sector Companies Listed at Indonesia Stock Exchange in 2018

2020 ◽  
Vol 5 (1) ◽  
pp. 24-29
Author(s):  
Shekinah Vitareyn Manullang ◽  
Francis Hutabarat
Keyword(s):  
Growth Rate ◽  
Statistical Data ◽  
Stock Exchange ◽  
Financial Statements ◽  
Sustainable Growth ◽  
Test Results ◽  
Mining Sector ◽  
Independent Variables ◽  
Sustainable Growth Rate ◽  
Research Analysis

This study aims to determine the effect of sustainable growth and liquidity on profitability, sustainable growth on profitability, and liquidity on profitability. The data used are quantitative in the form of financial statements on the Indonesia Stock Exchange in 2018. The population conducted in this study are companies listed on the Indonesia Stock Exchange. And the sample of this research is mining sector companies listed on the Indonesia Stock Exchange in 2018 and the population used is 40 companies. The variables used in this study are sustainable growth and liquidity as independent variables. Profitability as the dependent variable. The research analysis uses statistical data that is descriptive statistics, correlation matrix, significant tests, regression analysis for research data in the mining sector. Test results show that there is a significant effect between sustainable growth rate and liquidity on profitability. And there is no significant effect between Liquidity on Profitability. Simultaneously states there is a significant influence between sustainable growth rate and Liquidity on the profitability of mining companies in the Indonesia stock exchange in 2018.

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