The condition of companies in relation to their growth on example of NYSE and NASDAQ
Abstract This article covers the topic of the relationship between the growth of companies and their financial condition when different business profiles are surveyed, such as high-tech, growth potential companies included in the NASDAQ Composite Index and traditional, matured companies included in...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-06-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-024-00360-2 |
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| author | Agata Gniadkowska-Szymańska Anna Pluskota Monika Bolek |
| author_facet | Agata Gniadkowska-Szymańska Anna Pluskota Monika Bolek |
| author_sort | Agata Gniadkowska-Szymańska |
| collection | DOAJ |
| description | Abstract This article covers the topic of the relationship between the growth of companies and their financial condition when different business profiles are surveyed, such as high-tech, growth potential companies included in the NASDAQ Composite Index and traditional, matured companies included in the Dow Jones Industrial Average (DJIA), commonly known as blue-chip stocks. The hypothesis that the relationship between the Altman Z-score and the growth of enterprises as measured by assets, equity, sales, and earnings per share is positive was tested with Granger and VAR models. The main difference was found to be related to the size of the companies size and dynamics of growth. It was also shown that between NASDAQ enterprises there was no relationship between their growth and Altman Z-score, whereas when the DJIA blue chips were taken into account, a positive relationship was identified. It can be concluded that high-tech enterprises grow in a less predictable way not related to their economic condition, but mature enterprises focused on the growth and their condition. The value added of the article is finding that high-tech companies with growth potential and blue chips are managed in a different way due to their strategies of development. |
| format | Article |
| id | doaj-art-68cdf4c4d6ca45c8b7727f69d773e214 |
| institution | OA Journals |
| issn | 2314-7202 2314-7210 |
| language | English |
| publishDate | 2024-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj-art-68cdf4c4d6ca45c8b7727f69d773e2142025-08-20T01:51:28ZengSpringerOpenFuture Business Journal2314-72022314-72102024-06-011011910.1186/s43093-024-00360-2The condition of companies in relation to their growth on example of NYSE and NASDAQAgata Gniadkowska-Szymańska0Anna Pluskota1Monika Bolek2Department of Enterprise Analysis and Strategy, Faculty of Economics and Sociology, University of LodzDepartment of Corporate Finance, Faculty of Economics and Sociology, University of LodzDepartment of Corporate Finance, Faculty of Economics and Sociology, University of LodzAbstract This article covers the topic of the relationship between the growth of companies and their financial condition when different business profiles are surveyed, such as high-tech, growth potential companies included in the NASDAQ Composite Index and traditional, matured companies included in the Dow Jones Industrial Average (DJIA), commonly known as blue-chip stocks. The hypothesis that the relationship between the Altman Z-score and the growth of enterprises as measured by assets, equity, sales, and earnings per share is positive was tested with Granger and VAR models. The main difference was found to be related to the size of the companies size and dynamics of growth. It was also shown that between NASDAQ enterprises there was no relationship between their growth and Altman Z-score, whereas when the DJIA blue chips were taken into account, a positive relationship was identified. It can be concluded that high-tech enterprises grow in a less predictable way not related to their economic condition, but mature enterprises focused on the growth and their condition. The value added of the article is finding that high-tech companies with growth potential and blue chips are managed in a different way due to their strategies of development.https://doi.org/10.1186/s43093-024-00360-2Company growthEconomic conditionAltman Z-score model |
| spellingShingle | Agata Gniadkowska-Szymańska Anna Pluskota Monika Bolek The condition of companies in relation to their growth on example of NYSE and NASDAQ Future Business Journal Company growth Economic condition Altman Z-score model |
| title | The condition of companies in relation to their growth on example of NYSE and NASDAQ |
| title_full | The condition of companies in relation to their growth on example of NYSE and NASDAQ |
| title_fullStr | The condition of companies in relation to their growth on example of NYSE and NASDAQ |
| title_full_unstemmed | The condition of companies in relation to their growth on example of NYSE and NASDAQ |
| title_short | The condition of companies in relation to their growth on example of NYSE and NASDAQ |
| title_sort | condition of companies in relation to their growth on example of nyse and nasdaq |
| topic | Company growth Economic condition Altman Z-score model |
| url | https://doi.org/10.1186/s43093-024-00360-2 |
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