 The contribution of sales revenue management to firm growth: a test of two competing modelsTarek Ibrahim Eldomiaty International Journal of Revenue Management, 2010, vol. 4, issue 2, 131-144 Abstract: This paper examines the firm growth-size and growth-learning theories using sales revenue ratios and cost ratios. The results show that: 1) the DJIA firms' focus on the short-term leads to reduced growth rates; 2) low-growth firms are characterised by increasing costs and increasing debt financing; 3) high growth is associated with lower sales and lower costs; 4) in the high growth firms, the consistency of sales revenue ratios reflects the highly likely contribution of revenue management to promote high-growth rates; 5) the explanatory powers of the sales and costs models are relatively low which indicates that firms' growth depends upon other factors; 6) a new measure of firm growth is offered that improves the quality of the estimated models. This paper contributes to the literature by offering extended research possibilities to further examine the contribution of other financial determinants of firm growth. Keywords: growth-size theories; growth-learning theories; DJIA index; Dow Jones Industrial Average; sales-weighted growth; fixed assets; sales revenue ratios; cost ratios; short-term strategies; reduced growth rates; low-growth firms; increased costs; debt financing; debts; high growth firms; financial determinants; firm growth; revenue management. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijrevm:v:4:y:2010:i:2:p:131-144 Access Statistics for this article More articles in International Journal of Revenue Management from Inderscience Enterprises Ltd |
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