Sustainable Growth Rate and Firm Performance : Evidence From Iran Stock Exchange

Abstract

Our paper aims to examine the relation between Sustainable Growth Rate and Liquidity and Firm Performance for a sample of 54 firms listed in the Iran financial market during 2006-2009 . We use a linear regression analysis to examine the association between the deviation of actual growth rate from sustainable growth rate and Return on Assets(ROA) , Price to Book value(P/B), Current and Acid ratios . The study shows that the deviation of actual growth rate from sustainable growth rate is having relationship with ROA and P/B ratios.Also , we find no significant association the deviation of actual growth rate from sustainable growth rate and Current and Acid ratios .