THE DETERMINANTS OF FIRM’S GROWTH: AN EMPIRICAL EXAMINATION

This research examines the determinants of firms’ growth. Our findings indicate that firms willing to grow substantially and government programs designed to boost firms’ growth should put emphasis on investing in newer technology, diversifying from regional markets towards national and international markets, and delivering adequate returns, which provide the financial means to grow. These factors proved to be the most statistically significant explaining the growth of the firms analyzed. The results also indicate that the growth of the firm was not significantly related with its size, which is consistent with Gibrat’s law.