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Fernando Juárez



Authors and WSEAS

Fernando Juárez


WSEAS Transactions on Business and Economics


Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 15, 2018

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.


Volume 15, 2018


The Growth of Companies as a Function of Total Assets

AUTHORS: Fernando Juárez

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ABSTRACT: Total Assets determines the size of the companies and allows classifying them by economic relevance in every industry. However, the path of company growth, measured by Total Assets, might be different depending on the type of industry and the size of companies. Accordingly, this research focuses on identifying the trend in Total Assets growth across industries and company size by finding a function that fits industries-company-size combinations. The method is analytical, deductive and empirical; it is a cross-sectional analysis with six industries in two years (three for every year) with four different company sizes, based on Total Assets, grouped into the categories of micro, small, medium or big companies, for a total of 24 industrycompany-size-year combinations. Every combination of industry-company-size is analyzed to see which function yields the best fit. The functions are: 1) Linear, 2) Logarithmic, 3) Inverse, 4) Quadratic, 5) Cubic, 6) Compound, 7) Power, 8) S, 9) Growth, 10) Exponential, and 11) Logistic. The test consists of statistical regression analysis, ANOVA significance test and explained variance. The cubic function gives the best results in all industry-company-size combination for the two years. Other functions are relevant in some, but not all, combinations of categories. The conclusion is that cubic function provides the best fit for Total Assets company growth across industry-company-size combinations for the two years. Cubic function properties are described for future applications

KEYWORDS: Total Assets; company size; financial statements; industry classification

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 15, 2018, Art. #29, pp. 301-310


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