Last modified: 2022-05-07
Abstract
The sustainability of owners' wealth growth is essential for measuring the management performance, and also improves the continuum and the survival of the firm. In this study, the researcher will investigate the effects of the Internal Growth Rate and Cash Holding Ratio to the sustainable growth rate (proxy of owners' wealth growth), based on the data from the companies listed on the Iraqi Stock Exchange in the period ranging between 2008 and 2018. The study also determined the best combine effect of the variables which would help in the interpretation of the variance of the sustainable growth rate (SGR). Hence, for achieving this objective, the researcher made three hypotheses for exploring the explanatory power of the different variables of the sustainable growth rate. The study observed a linear relationship between the Internal Growth Rate (IGR), Cash liquidity Ratio and the ratio between the firm size and firm SGR. The internal firm growth and the firm size showed a good linear relationship. However, the relationship between the firm size and SGR showed the best linear model. The researcher made a vital conclusion that despite the variations in the Iraqi economic condition, the companies tested could manage their assets, as their assets were based on the internal resources, particularly, the retained earnings.
Published: Jan 2022
DOI:10.14500/icrm2020.Gen298