This paper examines three possible explanations for firm growth: (1) a firm grows according to the growth of sales revenue, (2) a firm grows according to cost savings, and (3) a firm grows according to the two factors simultaneously; that is, increasing sales by saving costs. This paper uses...

Purpose: In reality, financial decisions are made under conditions of asymmetric information that results in either favorable or adverse selection. As far as financial decisions affect growth of the firm, the latter must also be affected by either favorable or adverse selection. Therefore, the...

This paper examines the firm growth-size and growth-learning theories using sales revenue ratios and cost ratios. The results show that (I) low growth is positively associated with short-term turnovers which indicate that firms' focus on the short-term leads to reduced growth rates, (II)...