About this Business, Management and Accounting article
The Impact of High-tech Companies’ Performance and Growth on Capital Structure by Vladislav Spitsin; Darko B. Vukovic; Lubov Spitsina; Mustafa Özer is a Business, Management and Accounting article available to read on EtoBox.
## Purpose The purpose of this paper is to investigate the joint influence of two factors (companies’ performance and growth) on the company’s capital structure and to determine the conditions for financially sustainable competitive strategies in the coordinates profitability and growth. ## Design/methodology/approach The study sample includes 1,996 companies from 6 high-tech industries in Russia (panel data: 7,984 observations). The authors use regression models with random effects and carry out a three-dimensional visualization of the resulting dependencies. ## Findings The study found that profitability improves the capital structure (reduces the share of borrowed capital) and, on the contrary, the growth of companies (assets growth or sales growth) increases the leverage ratio. In the case of assets growth, the combined influence of two factors reduces the negative effect of assets growth. The results have shown that the outstripping growth of most high-tech companies requires an increase in debt capital and deterioration in the capital structure and financial stability. ## Practical implications In general, based on the results of this study, the authors have identified groups
It is typically read by researchers, students, and practitioners in Business, Management and Accounting.
- Author
- Vladislav Spitsin; Darko B. Vukovic; Lubov Spitsina; Mustafa Özer
- Publisher
- Emerald
- Published
- 2022
- Language
- EN
- Field
- Business, Management and Accounting (Social Sciences)