Abstract
The aim of this study is to investigate the influence of internal factors (i.e. the degree of internationalization, profitability, firm size, and financial leverage) and external factors (i.e. GNP growth and the inflation rate) on firms’ growth opportunities or their Investment Opportunity Set (IOS). The IOS is measured by the market-to-book assets ratio. The result shows that profitability and firms’ size have a positive impact on the IOS whereas the degree of internationalization and financial leverage has a negative influence on the IOS. Finally, the IOS is positively affected by GNP growth while the inflation rate has a negative impact on IOS.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
