The inter-relationship between profitability and growth in the emerging Iranian market
Author(s):
Abstract:
Presently, emerging economies are acquiring singular positions all over the world. The complexities of nowadays economy have caused international companies and investors to be of a tendency towards emerging markets for more profitability and growth. This study aims to find the relationships between firm's profitability and growth in Iranian manufacturing industry consisting of Tehran Stock Market listed manufacturing firms covering 2005-2014. In order to understand the direction of causality between firm growth and profitability, we use system-GMM (Generalized Method of Moments) to estimate growth and profit regressions. The results obtained indicate that there is positively bilateral relationship between profitability and growth in the case of Iranian manufacturing firms. Also, we find the positive impact of current profit (growth) on current growth (profit) is stronger than the impact of the prior year.
Keywords:
Finance , Economics , Firm growth , profitability , Panel data , System-GMM
Language:
English
Published:
International Journal of Industrial Engineering and Productional Research, Volume:27 Issue: 3, Sep 2016
Pages:
209 to 217
magiran.com/p1654972
دانلود و مطالعه متن این مقاله با یکی از روشهای زیر امکان پذیر است:
اشتراک شخصی
با عضویت و پرداخت آنلاین حق اشتراک یکساله به مبلغ 1,390,000ريال میتوانید 70 عنوان مطلب دانلود کنید!
اشتراک سازمانی
به کتابخانه دانشگاه یا محل کار خود پیشنهاد کنید تا اشتراک سازمانی این پایگاه را برای دسترسی نامحدود همه کاربران به متن مطالب تهیه نمایند!
توجه!
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.
In order to view content subscription is required
Personal subscription
Subscribe magiran.com for 70 € euros via PayPal and download 70 articles during a year.
Organization subscription
Please contact us to subscribe your university or library for unlimited access!