Determinants of Firm Growth: An Empirical Analysis of Textile sector of Pakistan

Abstract

This study examines determinants 0f firm gr0wth an empirical analysis fr0m SMEs sect0r 0f Pakistan. My finding indicates firm age and firm size have m0re influence 0n firm gr0wth. Different terms are used by different researchers .There are many fact0rs which are c0nsidered as determinants 0f firm gr0wth. Data was taken fr0m SMEs textile sect0r 0f Pakistan, c0mpanies listed under All Pakistan Textile Mills Ass0ciati0n (APTMA). Different statistical techniques like descriptive statistics, c0rrelati0n analysis and panel balanced regressi0n was used t0 study linkage between independent and dependent variables. In this research independent variables are firm size, pr0fitability, firm age and t0tal debt and firm gr0wth is 0ur dependent variable . i f0und that firm size and firm age has significant relati0nship with firm gr0wth, whereas pr0fitability and t0tal debt has insignificant relati0nship with firm gr0wth. Hausman test was als0 used f0r analysis. In this study firm size and firm age were f0und main drivers 0f firm gr0wth. In this study Hausman test was f0und significant, that’s why fixed regressi0n test was used.