The impact of organizational growth on a firm's profitability: Evidence from selected Philippine publicly listed non-financial companies for 2011-2014
Previous studies show that organizational growth has an impact on profitability while others state otherwise, showing that this topic is still on an ongoing debate. The purpose of this study is to determine whether or not organizational growth has an impact on selected Philippine publicly listed non...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2016
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/9774 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Previous studies show that organizational growth has an impact on profitability while others state otherwise, showing that this topic is still on an ongoing debate. The purpose of this study is to determine whether or not organizational growth has an impact on selected Philippine publicly listed non-financial companies profitability, using a panel data multiple regression analysis. Sales growth, asset growth, employee growth, and dividend growth were used as proxies for organizational growth while return on assets (ROA) and return on equity (ROE) for profitability. The study used secondary data from the financial statements of the companies found in the Philippine Stock Exchange Edge website, Osiris and firms websites. The period covered for the panel data analysis was four years from 2011 to 2014, with 2010 used as base year. Regression results showed that sales growth, employee growth and dividend growth are significant variables, and sales growth, asset growth and dividend growth have negative coefficients. Therefore, this research observed that organizational growth has a significant impact on profitability in terms of ROA but insignificant impact in terms of ROE. For further studies, the researchers suggest to add more industries from other countries or regions, particularly the ASEAN, for a larger data set in order to expose the similarities and differences between countries regarding the impact of organizational growth on profitability. Moreover, the researchers encourage further studies to employ additional growth proxies, such as those of fixed asset growth and cash flow growth, and profitability measures to provide more conclusive results. |
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