Sales Growth Rate Research Articles

A model proposal for estimating banks’ future value: Evidence from Turkey

Investors make solid decisions when evaluating their investments based on positive indicators the firm may show in the future, rather than based on its past performance. Accordingly, this study aims to investigate the relationship between performance criteria and the most significant value-based criterion; Economic Value Added (EVA). Further, it evaluates the impact of future EVA values on the bank value. Panel Data Analysis and the OLS Regression model are used to estimate the regression equation. The analysis is performed using data of 10 banks on the BIST Banks Index over the period 2011 to 2020. Furthermore, the EVA criterion was converted into standardized EVA(SEVA) by dividing EVA by total assets. The OLS regression analysis results revealed that the model’s explanatory power for the SEVA variable is 71.92%. The three variables that have positive correlation with SEVA are earnings per share (EPS) and TOBINQ rates at the 1% significance level and the price to sales growth rate with a degree of significance at 10%. Regarding the Panel Data Analysis results, while the explanatory power of the SEVA variable is 72.14%, its association with the EPS and TOBINQ criteria was found to be significant at the 1% significance level. The empirical investigations reveal that the model developed using the future SEVA as a proxy for bank value is found to be promising, and it is accepted that the SEVA variable can be used instead of the bank value.

Variabel Fundamental yang Mempengaruhi Struktur Keuangan dan Implikasinya terhadap Rentabilitas Ekonomi

Fundamental variables in this research are shown in the level of sales growth, asset structure, company size and retained earnings. The purpose of this study was to determine the effect of sales growth rate, asset structure, firm size and retained earnings on financial structure. In addition, the purpose of this study is to examine how these variables affect economic rentability. The population in this study is the Food and Beverage Industry Sub-sector listed on the Indonesia Stock Exchange for the 2016-2020 period as many as 15 companies. The sampling technique is using purposive sampling which is a technique in sampling with certain considerations. The sampling technique is carried out proportionally sampling with the type of Judgment Sampling. Data collection technique used is documentation technique with polling data type. The number of samples in this study were 11 companies, the data used in the form of financial statements of the Food and Beverage Industry Subsector obtained from the Indonesia Stock Exchange. The results showed that sales growth and retained earnings had a positive effect on financial structure, while asset structure and firm size had a negative effect. The results of research on economic rentability, sales growth variables and retained earnings also have a positive effect, while asset structure and firm size have a negative effect. So the findings of this study can be concluded that the growth rate of sales, retained earnings can improve the financial structure and economic rentability of the company.

СТРУКТУРНО-ДИНАМІЧНИЙ АНАЛІЗ ВНУТРІШНЬОГО СПОЖИВЧОГО РИНКУ У КОНТЕКСТІ МАКРОЕКОНОМІЧНОГО РОЗВИТКУ УКРАЇНИ

The article is devoted to the multifactor structural-dynamic analysis of the development of the consumer market of Ukraine as a system segmented into the markets of food and non-food goods and consumer services, and to determine the factor impact of its segments on macroeconomic dynamics. The stable growth of the analyzed segments was revealed, despite a slight decrease in the volume of sales of services in 2020 due to the quarantine restrictions imposed by the Government for certain types of economic activity. Changes in the commodity structure of the consumer market are analyzed. The average growth rate of food sales was 113.5%, non-food – 111.2%, services – 102.5%, which is fully correlated with the average growth of nominal GDP by 118.1%. It was found that the largest share of household expenditures was concentrated in the food market, where there was a faster growth in consumer prices compared to effective demand. It was found that the average monthly total expenditures of households in the consumer market decreased, primarily on non-food goods and services. In the domestic market of consumer services, there was a tendency to widen the gap between market supply and effective demand and redistribute the structure of consumer demand. To obtain an objective description of the impact of the domestic consumer market on the general parameters of the economic system of Ukraine, the factor influence of sales in consumer markets of food and non-food goods and services on GDP dynamics is analyzed. The significance of the parameters of the regression equation was checked by Fisher’s F-test. It was found that despite the significant aggregate influence of external factors, the obtained regression equation with a high degree of reliability indicates that the state of the consumer market of food products has little effect on nominal GDP, while the growth of non-food and services markets is guaranteed to increase GDP. This allows us to rethink the role of the domestic consumer market as a concept of a holistic system of socio-economic relations, which complements the established location of the interaction of producers and consumers with the institutional component. Further research is recommended to be directed in the direction of an extremely important aspect of goal-setting of institutional regulation of domestic consumer market development, namely meeting the needs of consumers, who are the final link in market relations.

ESTIMATING THE ADDITIONAL FUNDS NEEDED (AFN) FOR CORPORATE GROWTH: A CONTINGENCY PLANNING APPROACH

ABSTRACT Planning for growth is, perhaps, the most important responsibility of all Corporate Chief Executives. The growth of any company is closely tied to the growth in its sales revenue. Obviously, the higher the planned growth rate in sales, the larger is the amount of investment needed in the fixed and current assets of the company. To achieve the target growth rate in sales, the company executives need to undertake the task of estimating the additional funds needed and devising a strategy for meeting those funding needs. Most commonly, the equation used in the estimation of the additional or external funds needed is based on the “percentage of sales approach.” Under this approach, the main assumption is that the increases in the relevant balance sheet items will be in direct proportion to the planned growth rate in sales. While the additional investment in the buildings and equipment or inventories is under the control of the company management, it is not necessarily so with regard to the “spontaneous” increases in accounts receivable or accounts payable. In fact, their final values might be significantly different from the values forecasted from the simple equation based on the percentage of sales approach. In this paper we describe a contingency planning approach and develop different estimates for current assets such as accounts receivable, and for current liabilities such as accounts payable, using probability distributions under different scenarios. We use these estimates in the calculation of the external funds needed. This approach will provide the company management with different options and help them plan for the contingencies that may arise in achieving the growth targets of the company. Keywords Sales Growth, Percentage of Sales Approach, Additional Funds Needed (AFN)

Behavioral model modification theory of planned behavior considering factors of religiosity and awareness of purchasing halal cosmetics: a case study in yogyakarta

The assurance of the certainty of halal products needs to be considered, given the large Muslim population. Currently, the use of cosmetics is part of the main needs, this is indicated by the increasing growth rate of cosmetic sales in Indonesia. The behavior of purchasing cosmetic products with guaranteed halal product certainty is interesting to note. We can discuss the magnitude of the influence between product needs, religious principles, concerns, intentions, and behavior of Muslim consumers. The purpose of this study was to determine the factors that influence consumer intentions and behavior in buying halal cosmetic products using a modification of the Theory of Planned Behavior (TPB) model by considering the factors of religiosity and awareness. The results showed that attitudes, subjective norms, perception control, and religiosity had a positive and significant influence, while the awareness factor was not significant on consumer intentions to buy halal cosmetic products. While the intention has a positive and significant effect on the behavior of buying halal cosmetics.

COVID-19 Outbreak and Financial Performance of Chinese Listed Firms: Evidence From Corporate Culture and Corporate Social Responsibility.

This research described Chinese listed firms' COVID-19 Outbreak and financial performance using corporate culture (CC) and corporate social responsibility (CSR) evidence. The epidemic's impact on Chinese companies' profits was much less than the impact on their sales growth rates. Although the COVID-19 has had a more significant negative impact on the financial performance of Chinese listed companies in sectors that are more severely impacted, such as travel and entertainment, we believe that the financial performance of the medical industry has improved as a result of the outbreak. Meanwhile, Chinese listed companies in high-risk areas experience more significant financial losses during the epidemic, and the Hubei impact is hefty weight. Corporate social responsibility moderated the inverse relationship between this epidemic and Chinese firms' economic success. This research enhances the current literature on the effects of the COVID-19 on financial success and practical, realistic, and theoretical consequences in companies worldwide.

FORECASTING CHANGES IN THE STRUCTURE OF ASSETS AND CAPITAL OF AGRICULTURAL ENTERPRISES

The purpose of the study is to develop methodological approaches to forecasting changes in the structure of assets and capital of agricultural enterprises. Methodology. The information base of the article is presented by scientific works of domestic and foreign scientists. The research is based on scientific methods, among which it is expedient to distinguish: analysis and synthesis, comparison, idealization, and abstraction, as well as systematization and generalization – during the formulation of conclusions as a result of the study. Results. It is established that the agricultural sector of Ukraine has significant potential for further growth, but a number of problems hinder its development. Today, the stimulus is the system of land use and land relations, put into effect by lifting the moratorium on land sales. At present, the consequences of such reforms are unpredictable, as there are no clear and transparent rules of the «game» in the sector. It is found out that the most powerful participants in the agricultural market are agricultural holdings, which determine one of the goals of their activities is the development of infrastructure and expansion of influence in foreign markets. In modern economic conditions, the agricultural sector brings 15-20% of Ukraine's GDP annually, and despite the crisis of recent years, provides the population with high-quality products of its own production. Practical implications. One of the main problems in the implementation of working capital management policy is to determine the required amount and optimal composition, which is able to ensure the continuity of the enterprise, the maximum level of efficiency of funds. These problems are solved by forecasting the structure of working capital and forecasting its optimal amount. The urgency of the issue increases due to the fact that the problem of predicting the optimal size and structure of assets and capital challenges is caused by macroeconomic and macro-financial instability. Value/originality. Methodical approaches to forecasting changes in the structure of assets and capital are considered. It is proposed to use a system of indicators for calculations, including the following: growth rate of production and sales, a growth rate of product prices, projected operating costs, non-current assets at the beginning of the forecast period, projected investment, average depreciation rate of non-current assets, duration of production turnover inventories, the duration of collection of receivables, the average share of retained earnings in total profit from sales, the basic volume of production and sales, registered and annual invested capital of the enterprise.

МАРКЕТИНГОВИЙ АНАЛІЗ КОН’ЮНКТУРИ РИНКУ ЕЛЕКТРОТЕХНІЧНОЇ ПРОДУКЦІЇ

Purpose is to study the problem of efficiency of electrical enterprises by conducting a marketing analysis of the market of electrical products. Methodology. A set of theoretical and empirical methods of scientific cognition was used to solve the set tasks: analysis and transformation, diagnostic, deduction and analogy, statistical methods of comparative analysis, synthesis, graphic image. The information and empirical base is the data of the State Statistics Service of Ukraine, reports of the leading enterprises of Ukraine, materials of monographic researches of domestic and foreign scientists, Internet resources. Findings. The dynamics of the output of electrical products in 2018 shows that there is a slow growth in the production of electrical products, and the level of production in 2016 is not even 50% reached. The most needed in the market of electrical products are products for electricity consumption, which is important for the study of the marketing environment. The domestic market of lighting products shows a growing trend, in 2018 sold LED products worth 123 million euros, which was 47% of total production of lighting products. The economic crisis has somewhat destabilized the lighting market and reduced the growth rate of sales, but did not significantly affect the market of LED light sources. Originality. The modern domestic lighting market is focused on innovative products and energy-saving technologies, which in the structure of lighting sources occupy 75% of total sales. In the forecast period (2021–2023), the predominance of energy-saving technologies in the structure of sales will be observed, which is due to a significant rise in energy prices. Practical value. The study will allow domestic manu- facturers of lighting products in order to maintain their own position in the market, it is necessary to take active meas- ures to form and improve their own image. Сonclusions. The key potential opportunities for lighting companies are: the formation of mutually beneficial partnerships and business relationships in domestic and international markets through the formation of integration associations, which will form a strategy of attractive prices; opportunity to expand the range of products and services on the market, intensify marketing activities, improve the quality of management, use resources more efficiently, compete successfully with foreign companies.

Effect of seasonality, sales growth rate, and fiscal year end on cash conversion cycle

AbstractThe cash conversion cycle (CCC) measures the duration between a firm's outgoing and incoming cash flows. Firms track the CCC metric and employ it as a benchmark since lower CCC values may signal better operational and credit performance. We develop a typification of firms based on the processing lead time and credit periods negotiated with suppliers and customers, and demonstrate how these characteristics interact with sales growth rate, seasonality, and fiscal year end to affect the CCC. Based on our analytical models, we hypothesize that the impact of sales growth rate and the indirect effect of time on CCC can be positive or negative depending on the firm type. We also identify the crucial role that demand pattern in the zone of influence, an interval that we define around the fiscal year end, plays in determining the CCC. We test our hypotheses empirically using a multi‐level (random effect) model and a fixed effect model, where the levels of analyses are the specific firm types and individual firms, respectively. Our results, based on quarterly financial data of 58 firms over a 12‐year period, confirm the hypothesized effects of sales growth rate, fiscal year end, and seasonality on the CCC. Though frequently used, the CCC is thus a nuanced metric that needs careful interpretation. The findings of the paper are important to facilitate more accurate longitudinal CCC analyses and benchmarking comparisons that account for unique differences in sales growth rate, fiscal year end, and seasonality.

What Information in Financial Statements Could Be Used to Predict the Risk of Equity Investment?

Theoretically, accounting earnings could be used to estimate the intrinsic value of equity. If accounting earnings could be predicted accurately, then, so could be the value of equity, thereby, creating much less risk in equity investment. However, earnings surprises are common, and therefore so is the risk in equity investment. To quantify the risk in the investment implied from accounting earnings, I propose to use financial statements to construct abnormal sales growth rates (ABG) and abnormal changes in profit margins (ABPM) to measure the uncertainty embedded in the accounting earnings. I measure ABG (ABPM) as the difference between the current value of sales growth rate (profit margin) and its benchmark, a weighted value of the three preceding years’ sales growth rate (profit margin). Then, I quantify whether and to what extent the news of ABG and ABPM are material enough to change the expected earnings (proxied by analysts’ forecasted earnings revisions [FREV] and predicted unexpected earnings [UE], and future stock returns [SAR]). Fama–MacBeth regression results show that, together, solely ABPM and ABG could explain 8.2% (2.3%) (5.4%) of the variation of FREV (UE) (SAR). The risk-predictability of ABPM and ABG is robust to the presence of abnormal growth in net operating assets and accruals quality, which, suggested by previous literature, might influence unexpected earnings. Further contingent analyses indicate that the capital market reacts more strongly to the bad news embedded in the ABPM/ABG (with negative signs) than the good news in ABPM/ABG (with positive signs).

Pengaruh Leverage, Pertumbuhan Penjualan, dan Ukuran Perusahaan Terhadap Tax Avoidance

Tax Avoidance is an act to avoid taxes by companies that can reduce tax revenue for the state. This study aims to examine the effect of Leverage, Sales Growth, and Company Size on Tax Avoidance. Population in this study were all companies listed in Indonesia Stock Exchange for 2018 – 2019 period. Purposive sampling used as sampling technique and obtained 219 companies as samples. This study used quantitative method and the analysis was multiple linear regression analysis. Tax Avoidance proxied by Effective Tax Rate which have a negative interpretation of Tax Avoidance. The result of t test shows that Leverage has a significant effect on Tax Avoidance, positive relationship between Debt to Equity Ratio as proxy for Leverage and Effective Tax Rateas proxy for Tax Avoidance explains that the higher the Leverage, the lower the Tax Avoidance. Sales Growth has a significant effect on Tax Avoidance, negative relationship between sales growth and Effective Tax Rate explains that the higher the Sales Growth, the higher the Tax Avoidance. While Company Size has no significant effect on Tax Avoidance, bigger or smaller the Company Size will not have any effect on Tax Avoidance. The f test shows that Leverage, Sales Growth, and Company Size simultaneously have a significant effect on Tax Avoidance. Result of adjusted R square shows that the effect of Leverage, Sales Growth, and Company Size on Tax Avoidance is 0,072 or 7,2%.

항공운송 관련 업체들의 유·무형자원 투자 활동이 매출에 미치는 영향 연구

This study analyzed how investments of tangible and intangible assets by air transport companies affect their future sales growth.<BR> As for samples, this study selected 36 air transport companies that had their financial materials available from 2007 through 2019. As a result of analysis, this study found that advertising expenses exert a significantly positive(+) impact on the sales growth rate, but failed to confirm the effect of education and training cost on the outcome of companies. As a result of verification of the effect of capital expenditure on the sales growth rate, this study also found that it has a significantly negative(-) effect. In other words, capital expenditure does not contribute to the sales growth rate which is a general measured value for expansion of growth probability and market share of companies. The result of this study implies that systematically-planned investments are considered necessary for increasing sales for creation of outcome for air transport companies to be used for improvement of outcome when air transport companies obtain tangible assets and invest for creation of intangible assets after COVID-19.

Impact evaluation of soft drink taxes as part of nutrition policies in Gulf Cooperation Council countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates

Background: Prevalence of overweight and obesity is high in the Eastern Mediterranean Region, and there are higher rates in Gulf Cooperation Council (GCC) countries. This had led GCC countries to impose policies that aim to decrease obesity, overweight, and diabetes rates. The objective of this research is to measure the impact of such implemented policy to reduce obesity, namely taxes applied to sugar-sweetened beverages (SSB) in GCC. Methods: The impact of SSB taxes has been measured using a panel data set that covers sales volumes of soft drinks in GCC countries from 2010 to 2020. Results: annual growth in soft drink sales volumes decreased; from 5.44% to 1.33% in Saudi Arabia, 7.37% to 5.93% in United Arab Emirates, and 5.25% to 5.09% in Bahrain from 2016 to 2017. In Qatar, a tax was implemented in 2019, and a reduction in sales volume growth was observed between 2019 and 2020 (3.78% to 2.45%), and in Oman a reduction was observed between 2018 and 2019 (3.60% to 2.99%). Kuwait was the last GCC country to implement taxes in 2020, and the growth in sales volumes decreased from 6.31% to 5.47% from 2019 to 2020. Conclusions: The introduction of health-related taxes on soft drinks has been followed by a drop in the growth rates of sales in GCC countries. This, in turn, can be expected to contribute to a reduction in the prevalence of overweight and obesity, especially when combined with complementary public health policies and interventions. Hence, awareness campaigns should promote the reduction of the consumption sales of SSB and substitute with more consumption of fresh juices. These recommendations align with the recommended priority actions by the World Health Organization Strategy on nutrition for the Eastern Mediterranean Region 2020-2030 adopted by the countries of the Region in October 2019.

Customer relationship and the operating performance following private placements

PurposeClose relationship with major customers, by curtailing opportunistic behaviors during private placements (PPs) and guaranteeing the production and sales of products after, is expected to facilitate the realization of PP’s strategic goals. However, major customers, on the contrary, may impair PP’s performance because of their strong bargaining power. Based on the transaction cost theory and relational contract theory, this paper aims to investigate the impact of major customers on firms’ strategic development in the context of private placements. The mechanisms of such impact are analyzed from the prospect of economies of scale, supervision and the rip-off effect by major customers. Further, the moderating role of the customer relationship investment (CRI) is considered.Design/methodology/approachUsing a sample of China’s non-financial A-share listed firms during 2010-2016, this paper empirically investigates the impact of customer relationships on firms’ operating performance following PPs. In the main regressions, the sales growth rate serves as the dependent variable to measure PP’s operating performance, while the customer concentration proxies for the closeness of customer relationship. This study captures the impact of customer relationships on PPs’ performance by looking at the coefficient of the interaction term of post PP dummy and customer concentration. In the additional tests, selling and management expenses along with entertainment and traveling expenditures are used to measure customer relationship investment.FindingsResults show that major customers help improve PPs’ strategic performance. The more concentrated the customer portfolio is, the higher operating performance will be after the PPs. Such a relationship is stronger when CRI is at a higher level. However, CRI also incurs costs, which impairs the effect of major customers on net profit. Further research finds that the effect of major customers is more pronounced in situations of extensional PPs, with actively interactive customers and in non-state-owned firms. In addition, state-owned customers with strong bargaining power have impaired the role of customers in promoting PP’s operating performance.Originality/valueThis paper validates the role of customers in firms’ strategic development. The study not only contributes to the research on the economic consequences of customers but also adds to the evolving literature of factors affecting the performance of PPs. The findings of the study have important practical implications for both customer relationship management and the supervision of PPs.

Shigeyuki Abe Comment on How Did Japan Cope with COVID-19? Big Data and Purchasing Behavior

Shigeyuki Abe Comment on How Did Japan Cope with COVID-19? Big Data and Purchasing Behavior

Leveraging synergies versus resource redeployment: Sales growth and variance in product portfolios of diversified firms

AbstractResearch SummaryThis article analyzes the relationship between sales growth and variance for diversified firms. Distinguishing product niches linked by scale free versus non‐scale free resources, this study predicts that the more a firm diversifies leveraging on a non‐scale free resource, the more likely its sales growth and variance are positively correlated. However, this relationship is negatively moderated by the presence of a scale‐free resource such that the presence of scale‐free resources of high value implies a negative correlation. These theoretical intuitions are consistent with data from 2008 to 2013, reflecting firm sales growth rates in five industries spanning 45 product niches in seven EU countries and the United Kingdom. These industries prioritize shelf space as a non‐scale free resource, and brand as a scale free resource.Managerial SummaryDiversifiers may base their value creation either in pursuing synergies or in exploiting the benefits derived by internal resource redeployment across products or across industries. Here, we highlight the different managerial implications on risk/performance structure derived from diversification based on resource redeployment compared to diversified companies exploiting synergies. Can the disparity of sales growth between products of the same firm's portfolio be good for the corporate performance? Here, we show that diversification based on resource redeployment goes hand in hand with a positive relation between overall firm growth and variance of results within the same firm. On the contrary, firm diversification based on synergies implies a negative relationship between within firm disparity and overall firm growth.

Corporate social responsibility and firm performance: does institutional quality matter?

PurposeThe purpose of this paper is to investigate whether institutional quality influences the corporate social responsibility (CSR) and firm performance (FP) relationship.Design/methodology/approachThis paper uses a large sample of 814 European firms from roughly 2008 to 2017. In order to resolve the problem of endogeneity and heterogeneity the system generalized method of moment is performed.FindingsFirst, the effect of CSR on FP is simultaneously positive and significant for the economic, social and overall score based on an equal-weighted performance of four CSR pillars. Second, we found that the institutional quality matters, as corruption significantly decreases the FP, while government stability law and order exert a positive impact. Third, results suggest, similarly, that FP benefits from the interactional relationship between CSR and institutional quality. Finally, as for firm specifics, we found that the lagged performance and growth rate of sales significantly increase the European FP. However, FP is negatively sensitive to the leverage ratio.Research limitations/implicationsThis study aims to fill the gap in the CSR-FP interrelation and institutional context. Since we have a large number of firms (814) compared to a relatively small temporal dimension (10 years), the dynamic panel data analysis, and more precisely, the SGMM approach, is the most appropriate to resolve the problem of endogeneity and heterogeneity.Practical implicationsThe institutional environment affects the firm's CSR response and results. The strong institutional quality may result in increased regulatory pressures placed on the firm related to social responsibility compliance and can thereby enhance the CSR–FP relationship.Originality/valueTo the best of our knowledge, this is the first study that explored the relationship between CSR–FP and institutional quality in the European context. Indeed, this paper shows that institutional quality mediates the relationship between CSR practices and FP.

An analysis of the effects of occupational accidents on corporate management performance

Occupational accidents in a workplace not only cause serious physical and/or mental damage to workers, but also have significant impacts on the corporate management performance through compensation costs for the victims, suspension of production, decline of corporate image, etc. Based on the corporate-level panel data of the Korean manufacturing industries established by merging the workplace-level occupational accidents data into the financial statements data, this study analyzes the quantitative effects of occupational accidents on corporate performance using econometric techniques. According to the analysis result, the increase of occupational accidents reduces sales per employee, operating profit per employee, the ratio of operating profit to sales and sales growth rate by a statistically significant level. To be specific, 1% increase of the occupational accidents rate reduces the sales per employee by about KRW 12.15～14.31 million, the operating profit per employee by about KRW 2.11～2.47 million, the ratio of operating profit to sales by 1.11～1.21%p, and the sales growth rate by 0.45～0.71%p.

An empirical study on the influence of patents on the management performance of corporates

Background/Objectives: We would like to study empirically on the impact of the quantitative and qualitative aspects of patent rights on management performance on small and medium-sized enterprises that did not have much research due to lack of data. We want to examine whether the growth rate of sales in the management performance of small and medium enterprises after securing patent rights is different from that of general small and medium enterprises. Methods/Statistical analysis: We would like to analyze whether small and medium-sized enterprises that hold patents show an average sales growth rate of 9% or more, more than double the average sales growth rate of all small and medium-sized enterprises. In 2012, 278 small and medium-sized manufacturing companies with patents that took out loans through guarantees from the Korea Credit Guarantee Fund were selected as samples. The relationship between the average sales growth rate of these companies over the next five years and the quantitative and qualitative value of patents was analyze. Findings: Both independent variables(the number of patents, the average score of patents) were significant for distinguishing between corporates with an average growth in sales more than twice that of general small and medium-sized enterprises and those with less than twice the average sales growth rate. In this case, ‘the average score of patents’ of the two variables was found to be more important, and the discriminant power was greater. it can be said that the discriminant power is useful in order of ‘average score of patents’, ‘number of patents’. Improvements/Applications: In previous research, large companies were analyzed to focus on their past management performance and patent rights. In this study, it is meaningful that we looked at the variability in future sales of small and medium-sized enterprises with patents through empirical analysis. There are limitations that only average sales growth rate was used as a variable among indicators of a corporate's management performance in this study.

COVID-19 Uncertainty: A Tale of Two Tails

Uncertainty about own-firm sales growth rates over the year ahead roughly doubled in reaction to the COVID shock, according to our surveys of U.S. and U.K. business executives. Firm-level uncertainty receded after spring 2020 but remains much higher than pre-COVID levels. Moreover, the nature of firm-level uncertainty has shifted greatly since the pandemic struck: Initially, business executives perceived an enormous increase in downside uncertainty, which has now dissipated. As of October 2021, almost all of the extra firm-level uncertainty is to the upside. In short, economic uncertainty associated with the pandemic has morphed from a tale of the lower tail into a tale about the upper tail.