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Title: The relative contribution of financial and non-financial determinants to firm growth under high and low levels of information asymmetry
Author: Bishara, Mina
ISNI:       0000 0004 7225 3824
Awarding Body: Coventry University
Current Institution: Coventry University
Date of Award: 2017
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Various financial decisions contribute to the success of firms including investment decisions, dividend policy and financing decisions (capital structure). Nevertheless, other variables such as the industry in which the firm operates, size of the firm and ownership structure can also play an important role in increasing overall corporate performance. Extant research utilises a number of proxies for estimating corporate success, including profitability, size, employment, to name a few. This thesis focuses on one of the most important drivers of corporate success - firm growth. Arguably, growth is an ultimate goal for all companies as it benefits all stakeholders. In this study, firm growth is proxied using the growth-in-sales indicator. The financial and non-financial variables mentioned above can, in various circumstances, contribute or hinder firm growth. The three main corporate decisions (investment, dividends and financing), as reflected by the aforementioned financial measures, can contribute or hinder firm’s growth as there is almost always a trade-off amongst them, owing to their complex inter-relationships. Similarly, a non-financial determinant such as ownership structure can contribute to firm growth. A major factor that affects these relationships is the presence of information asymmetry. The latter is considered as a mediator as it could explain the relationship between financial, non-financial decisions and firm growth. Information asymmetry is measured in this thesis using three proxies to distinguish between high- and low-levels of information asymmetry, namely Sensitivity of stock returns to expected Return on Equity (Beta ROE), Probability of default of Return on Equity (PD ROE), and the Q Ratio. This thesis contributes to the literature of corporate finance by examining the relative contribution of financial and non-financial variables to firm’s growth.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available