An Empirical Assessment Of The Growth Of The Firm And Its Influencing Factors

This paper investigates the dimensions and the influencing factors of the growth of the firm. Built on the previous literature, this paper suggests that the firm's asset, sales volume, profitability, and market value are among the four key elements through which the firm growth is reflected and evaluatedUsing a sample of 12 listed household firms to examine, this paper employs the principal component analysis to assess to the growth of the firm. In addition, it makes a comparison of the change of growth among the household enterprises in a span of ten years, and analyzes the differences reflected in the growth and change of the twelve household enterprises.This paper also discusses the influencing factors identified by the theory of the growth of the firm and analyses the underlying reasons behind the performance differences of the firms. Four main factors emerged: (1) the performance of the firm's main business; (2) the firm strategies; (3) the competition in the segmented market; and (4) the firm's equity and governance mechanisms.