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 – The objective of this study is to examine the relative contribution of three groups of factors that are associated with working capital at risk. These factors are grouped as firm-level, industry-level and country level variables. Working capital at risk is treated as the Value at...

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...