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229413

Factors affecting the Sustainable Growth Rate and its impact on Firm Value: Empirical Evidence from the Egyptian Stock Exchange

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Last updated: 25 Dec 2024

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Abstract

Currently, the sustainable growth has become essential for any firm to survive and expand without running into financial problems. This research empirically examines the effect of the Firm Performance accounting indicators as leverage, liquidity, profitability, asset efficiency, and size on the Sustainable Growth Rate (SGR). Moreover, this research also examines the effect of the Sustainable Growth Rate on the value of firms listed in the Egyptian Stock Market. The research use a sample of Egyptian listed firms for 5 year's period starting from 2015 till 2019. The empirical results have found statistically significant positive relationships between the SGR and the firm leverage, profitability, and firm asset efficiency. However, there is a statistically significant negative relationship between the SGR and the size of the firm. Meanwhile, the relationship between the SGR and the firm's liquidity is insignificant. In addition, the empirical results have found a statistically significant positive effect of the SGR on the Firm Value for firms listed in the Egyptian Stock Market. This research recommends that the financial regulatory authority to establish a database for listed Egyptian firms according to their sustainable growth rate to attract potential investors as well as to attract and enhance foreign investments. Moreover, the research recommends that Accounting Departments in the Egyptian Universities should focus on the sustainable growth rate issue in their conferences to enhance the awareness of the Egyptian firms by this topic; thus firms will be able to compete, expand and perform well in the long run without running into financial problems

DOI

10.21608/naus.2022.229413

Keywords

: Sustainable growth rate, firm performance, Leverage, Asset efficiency, Firm value

Authors

First Name

Dalia

Last Name

El Madbouly

MiddleName

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Affiliation

کلية التجارة- جامعة دنهور

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Volume

11

Article Issue

1

Related Issue

32863

Issue Date

2022-04-01

Receive Date

2022-04-06

Publish Date

2022-04-01

Page Start

1

Page End

40

Print ISSN

2314-4793

Online ISSN

2314-4807

Link

https://naus.journals.ekb.eg/article_229413.html

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https://naus.journals.ekb.eg/service?article_code=229413

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1

Type

ابحاث اصیلة

Type Code

1,273

Publication Type

Journal

Publication Title

مجلة المحاسبة والمراجعه لاتحاد الجامعات العربيه

Publication Link

https://naus.journals.ekb.eg/

MainTitle

Factors affecting the Sustainable Growth Rate and its impact on Firm Value: Empirical Evidence from the Egyptian Stock Exchange

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Article

Created At

22 Jan 2023