AN EXPLORATORY FACTOR ANALYSIS OF FIRMS ENDOGENOUS GROWTH MEASURES

Author:

Tchuta Leonard,Xie Fuji

Abstract

Purpose: This study attempts to standardize firm endogenous growth measures by performing exploratory factor analysis on nine firm endogenous growth measures (equity book value, equity market value, working capital, stock R&D investments, stock advertisement investment, stock capital asset investment, operating expenses, sales revenue, and the number of employees). Methodology: Data was generated by pooling a panel dataset of 116 firms and13 years timespan data. Main Findings: The result of the analysis reveals three underlying firm growth factors (namely firm financials, operations, and capabilities) representing the initial nine growth measures. Implications/Applications: The results of this research can be used as the bases for further research in firm endogenous growth model analysis.

Publisher

Maya Global Education Society

Subject

General Social Sciences,General Arts and Humanities

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