Post-recession business growth:impact on ROE in the long and short term
At the beginning of the current century, the world economy experienced several crisis events that negatively influenced business performance. Many businesses have experienced long periods of declining sales. This paper continues the series of scientific works on the study of restarting growth, i.e....
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| Format: | Article |
| Language: | English |
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Universidad Politécnica Salesiana
2024-10-01
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| Series: | Retos: Revista de Ciencias de la Administración y Economía |
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| Online Access: | https://revistas.ups.edu.ec/index.php/retos/article/view/8790 |
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| author | Vladislav Spitsin Marina Ryzhkova Lubov Spitsina Victoria Leonova |
| author_facet | Vladislav Spitsin Marina Ryzhkova Lubov Spitsina Victoria Leonova |
| author_sort | Vladislav Spitsin |
| collection | DOAJ |
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At the beginning of the current century, the world economy experienced several crisis events that negatively influenced business performance. Many businesses have experienced long periods of declining sales. This paper continues the series of scientific works on the study of restarting growth, i.e., the growth of companies after a long period of stagnation or falling sales. The paper contributes to the world literature by analyzing the impact of different types of restarting growth on firm performance (firm’s return on equity – ROE). The panel data includes
7528 observations (1882 firms * 4 years). Regression models with fixed effects are used for data analysis. The study revealed a positive impact of long-term growth on ROE, but it did not confirm the impact of short-term growth on ROE. The maximum benefits accrue to young companies
with long-term fast sales growth. Empirical studies provide varying results on the impact of growth on firm profitability. Our approach reconciles
these contradictions and shows that sustainable long-term growth allows firms to achieve higher profitability. These results will be of interest for
investors, who should focus on finding companies that can demonstrate annual sales growth for several years. It is also advisable for owners and managers to strive for long-term annual growth in firm sales.
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| format | Article |
| id | doaj-art-2a2cdd8639454e74b6d0a2e9abba2619 |
| institution | Kabale University |
| issn | 1390-6291 1390-8618 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Universidad Politécnica Salesiana |
| record_format | Article |
| series | Retos: Revista de Ciencias de la Administración y Economía |
| spelling | doaj-art-2a2cdd8639454e74b6d0a2e9abba26192025-02-07T16:30:28ZengUniversidad Politécnica SalesianaRetos: Revista de Ciencias de la Administración y Economía1390-62911390-86182024-10-01142810.17163/ret.n28.2024.07Post-recession business growth:impact on ROE in the long and short termVladislav Spitsin0https://orcid.org/0000-0002-8360-7590Marina Ryzhkova1https://orcid.org/0000-0002-0107-8016Lubov Spitsina2https://orcid.org/0000-0002-3923-984XVictoria Leonova3https://orcid.org/0000-0002-9660-4356Universidad Politécnica Nacional TomskUniversidad Politécnica Nacional TomskUniversidad Politécnica Nacional TomskUniversidad Politécnica Nacional Tomsk At the beginning of the current century, the world economy experienced several crisis events that negatively influenced business performance. Many businesses have experienced long periods of declining sales. This paper continues the series of scientific works on the study of restarting growth, i.e., the growth of companies after a long period of stagnation or falling sales. The paper contributes to the world literature by analyzing the impact of different types of restarting growth on firm performance (firm’s return on equity – ROE). The panel data includes 7528 observations (1882 firms * 4 years). Regression models with fixed effects are used for data analysis. The study revealed a positive impact of long-term growth on ROE, but it did not confirm the impact of short-term growth on ROE. The maximum benefits accrue to young companies with long-term fast sales growth. Empirical studies provide varying results on the impact of growth on firm profitability. Our approach reconciles these contradictions and shows that sustainable long-term growth allows firms to achieve higher profitability. These results will be of interest for investors, who should focus on finding companies that can demonstrate annual sales growth for several years. It is also advisable for owners and managers to strive for long-term annual growth in firm sales. https://revistas.ups.edu.ec/index.php/retos/article/view/8790fast-growing firmsrestarting growthfirm performanceROEpanel data analysis |
| spellingShingle | Vladislav Spitsin Marina Ryzhkova Lubov Spitsina Victoria Leonova Post-recession business growth:impact on ROE in the long and short term Retos: Revista de Ciencias de la Administración y Economía fast-growing firms restarting growth firm performance ROE panel data analysis |
| title | Post-recession business growth:impact on ROE in the long and short term |
| title_full | Post-recession business growth:impact on ROE in the long and short term |
| title_fullStr | Post-recession business growth:impact on ROE in the long and short term |
| title_full_unstemmed | Post-recession business growth:impact on ROE in the long and short term |
| title_short | Post-recession business growth:impact on ROE in the long and short term |
| title_sort | post recession business growth impact on roe in the long and short term |
| topic | fast-growing firms restarting growth firm performance ROE panel data analysis |
| url | https://revistas.ups.edu.ec/index.php/retos/article/view/8790 |
| work_keys_str_mv | AT vladislavspitsin postrecessionbusinessgrowthimpactonroeinthelongandshortterm AT marinaryzhkova postrecessionbusinessgrowthimpactonroeinthelongandshortterm AT lubovspitsina postrecessionbusinessgrowthimpactonroeinthelongandshortterm AT victorialeonova postrecessionbusinessgrowthimpactonroeinthelongandshortterm |