IDEAS home Printed from https://ideas.repec.org/a/taf/raflxx/v3y2007i6p373-379.html
   My bibliography  Save this article

Firms’ growth opportunities and profitability: a nonlinear relationship

Author

Listed:
  • Zèlia Serrasqueiro
  • Paulo Macas Nunes
  • Sequeira Tiago Neves Sequeira

Abstract

Using different panel estimators, this article shows that the relationship between growth opportunities and profitability is nonlinear in a sample of firms in the Portuguese Stock Market. These results highlight that firms with low and high growth opportunities tend to show high profitability and firms in the middle of the growth opportunities distribution have small profitability. These suggest that the agency problems between managers and owners are particularly relevant in firms with middle growth opportunities, as managers seem to act in order to simultaneously grow and decrease profitability.

Suggested Citation

  • Zèlia Serrasqueiro & Paulo Macas Nunes & Sequeira Tiago Neves Sequeira, 2007. "Firms’ growth opportunities and profitability: a nonlinear relationship," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 373-379.
    • Handle: RePEc:taf:raflxx:v:3:y:2007:i:6:p:373-379
    DOI: 10.1080/17446540701262827
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17446540701262827
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17446540701262827?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:raflxx:v:3:y:2007:i:6:p:373-379. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rafl20 .

    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.