Journal of Accounting and Management Information Systems (JAMIS)

The impact of profitability on the company's growth

10/2004 ,   p65..67


Keywords:   financing sources, financing policy, activity growth, financial result


The structure and evolution of financing sources naturally lead to a variable financial result. According to the dividend policy of the company, the profitableness is considered as own sourse of financing. In the same time, by the nature and efficiency of using the financing sources, the financing policy of a company leads to the variability of the profitableness. In the case of dividend average quota of 100%, the increase of the rate of financial profitableness leads to the stagnation of company growth. Otherwise, if at the same time with incresing the rate of financial profitableness is used a judicious policy of dividend, the rate of the company growth will be higher than the rate recorded in the previous periods