IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2024i4p61-74.html
   My bibliography  Save this article

Factors Affecting Sustainable Growth Rate and its Impact on Financial Performance of Kosovo Manufacturing Companies

Author

Listed:
  • Yllka Ahmeti
  • Albina Kalimashi
  • Ardi Ahmeti
  • Skender Ahmeti

Abstract

The paper aims to identify the factors affecting the sustainable growth rate of companies over eleven years from 2011 to 2021. The research used panel regression analysis and examined a sample of 92 manufacturing companies operating in the market of Kosovo. This study used a pooled OLS regression model to investigate the variables affecting sustainable growth rate (SGR). According to the research, SGR has a negative significant impact on profitability (ROA), liquidity (LIQ), and equity ratio (TETA). However, there was a positively statistically significant relationship between SGR, asset efficiency (STA), capital structure (TDTE), and sales growth (SG). These findings provide insight into the important factors influencing the study environment's sustainable growth rate. The findings, according to the study, can be used by management to build and implement long-term growth strategies. Businesses can improve their operations, and align them with the objective of sustainable growth by considering the impact of the identified variables. It also provides for a more accurate evaluation of the company's financial success and long-term performance. The study's findings have practical implications for a wide range of stakeholders, including corporate executives, investors, financial institutions, and researchers. All of these groups can use the knowledge provided to make better decisions and support sustainable development rates.

Suggested Citation

  • Yllka Ahmeti & Albina Kalimashi & Ardi Ahmeti & Skender Ahmeti, 2024. "Factors Affecting Sustainable Growth Rate and its Impact on Financial Performance of Kosovo Manufacturing Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 61-74.
    • Handle: RePEc:bas:econst:y:2024:i:4:p:61-74
    as

    Download full text from publisher

    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2024/2024-4/05_Skender%20Ahmeti.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ali Raza & Umer Farooq, 2017. "Determinants of Return on Equity: Evidence from the Cement Industry of Pakistan," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 10(Special I), pages 106-119, May.
    2. Ferraris, Alberto & Devalle, Alain & Ciampi, Francesco & Couturier, Jerome, 2019. "Are global R&D partnerships enough to increase a company's innovation performance? The role of search and integrative capacities," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    3. Li Huang & Qianwei Ying & Shanye Yang & Hazrat Hassan, 2019. "Trade Credit Financing and Sustainable Growth of Firms: Empirical Evidence from China," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    4. Pablo Ponce & José Álvarez-García & Johanna Medina & María de la Cruz del Río-Rama, 2021. "Financial Development, Clean Energy, and Human Capital: Roadmap towards Sustainable Growth in América Latina," Energies, MDPI, vol. 14(13), pages 1-16, June.
    5. Katerina Lyroudi & Pantelis Valkanas, 2018. "Do Financial Ratios Affect Stock Returns in the Athens Stock Exchange?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 497-516, December.
    6. Georgeta VINTILA & Floriniþa DUCA, 2012. "The Impact of Financial Leverage to Profitability Study of Companies Listed in Bucharest Stock Exchange," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1741-1744, May.
    7. Lina Hani Warrad & Mahmoud Nassar, 2017. "Could Profitability, Activity and Use of Equity Finance Increasing DuPont Model of Return on Equity? Jordanian Case," International Review of Management and Marketing, Econjournals, vol. 7(3), pages 35-41.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farouq Altahtamouni & Ahoud Alfayhani & Amna Qazaq & Arwa Alkhalifah & Hajar Masfer & Ryoof Almutawa & Shikhah Alyousef, 2022. "Sustainable Growth Rate and ROE Analysis: An Applied Study on Saudi Banks Using the PRAT Model," Economies, MDPI, vol. 10(3), pages 1-12, March.
    2. Benkraiem, Ramzi & Boubaker, Sabri & Brinette, Souad & Khemiri, Sabrina, 2021. "Board feminization and innovation through corporate venture capital investments: The moderating effects of independence and management skills," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    3. Zhang, Zhuo & Zhao, Yongliang & Cai, Haiya & Ajaz, Tahseen, 2023. "Influence of renewable energy infrastructure, Chinese outward FDI, and technical efficiency on ecological sustainability in belt and road node economies," Renewable Energy, Elsevier, vol. 205(C), pages 608-616.
    4. Grzegorz Zimon & Robert Dankiewicz, 2020. "Trade Credit Management Strategies in SMEs and the COVID-19 Pandemic—A Case of Poland," Sustainability, MDPI, vol. 12(15), pages 1-16, July.
    5. Destek, Mehmet Akif & Adedoyin, Festus & Bekun, Festus Victor & Aydin, Sercan, 2023. "Converting a resource curse into a resource blessing: The function of institutional quality with different dimensions," Resources Policy, Elsevier, vol. 80(C).
    6. Syed Abdul Rehman Khan & Pablo Ponce & Muhammad Tanveer & Nathalie Aguirre-Padilla & Haider Mahmood & Syed Adeel Ali Shah, 2021. "Technological Innovation and Circular Economy Practices: Business Strategies to Mitigate the Effects of COVID-19," Sustainability, MDPI, vol. 13(15), pages 1-17, July.
    7. Wan, Qilong & Miao, Xiaodong & Afshan, Sahar, 2022. "Dynamic effects of natural resource abundance, green financing, and government environmental concerns toward the sustainable environment in China," Resources Policy, Elsevier, vol. 79(C).
    8. Lina Hani Warrad & Mahmoud Nassar, 2017. "Could Profitability, Activity and Use of Equity Finance Increasing DuPont Model of Return on Equity? Jordanian Case," International Review of Management and Marketing, Econjournals, vol. 7(3), pages 35-41.
    9. Khan, Syed Abdul Rehman & Ponce, Pablo & Yu, Zhang & Ponce, Katerine, 2022. "Investigating economic growth and natural resource dependence: An asymmetric approach in developed and developing economies," Resources Policy, Elsevier, vol. 77(C).
    10. Arora, Anshu Saxena & Sivakumar, K. & Pavlou, Paul A., 2021. "Social capacitance: Leveraging absorptive capacity in the age of social media," Journal of Business Research, Elsevier, vol. 124(C), pages 342-356.
    11. Bryane Michael & Nataliya Koroleska & Andy Tai & David Wai Ho Wong, 2022. "A critical look at using financial technology policy to promote the sustainable development goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1911-1920, December.
    12. Qin Lu & Zongyi Zhang, 2022. "Do Financial Support Policies Catalyse the Development of New Consumption Field?—Evidence from China’s New Consumer Enterprises," Sustainability, MDPI, vol. 14(20), pages 1-23, October.
    13. Yanhong Liu & Jia Lei & Yihua Zhang, 2021. "A Study on the Sustainable Relationship among the Green Finance, Environment Regulation and Green-Total-Factor Productivity in China," Sustainability, MDPI, vol. 13(21), pages 1-27, October.
    14. Wang Dongfang & Pablo Ponce & Zhang Yu & Katerine Ponce & Muhammad Tanveer, 2022. "The future of industry 4.0 and the circular economy in Chinese supply chain: In the Era of post-COVID-19 pandemic," Operations Management Research, Springer, vol. 15(1), pages 342-356, June.
    15. Xie, Zaiyang & Wang, Jie & Miao, Ling, 2021. "Big data and emerging market firms’ innovation in an open economy: The diversification strategy perspective," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    16. Pereira, Vijay & Bamel, Umesh & Temouri, Yama & Budhwar, Pawan & Del Giudice, Manlio, 2023. "Mapping the evolution, current state of affairs and future research direction of managing cross-border knowledge for innovation," International Business Review, Elsevier, vol. 32(2).
    17. David Rodeiro‐Pazos & Sara Fernández‐López & Raúl Rios‐Rodríguez & Adrián Dios‐Vicente, 2023. "Working capital management and firm sales growth: Evidence from fish processing industry," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1254-1278, October.
    18. Muhammad Akhtar & Kong Yusheng & Muhammad Haris & Qurat Ul Ain & Hafiz Mustansar Javaid, 2022. "Impact of financial leverage on sustainable growth, market performance, and profitability," Economic Change and Restructuring, Springer, vol. 55(2), pages 737-774, May.
    19. Sofiane Mostefaoui & Ali Yousfat, 2022. "The Challenges of the Networked Enterprises: A Conceptual Paradigm," Technium Social Sciences Journal, Technium Science, vol. 38(1), pages 467-477, December.
    20. Afraz, Muhammad Fawad & Bhatti, Sabeen Hussain & Ferraris, Alberto & Couturier, Jerome, 2021. "The impact of supply chain innovation on competitive advantage in the construction industry: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

    More about this item

    JEL classification:

    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2024:i:4:p:61-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.