چکیده:
In the field of the relationship between growth and profitability of companies, there is duality in the conducted studies. While some studies have examined the impact of growth on the profitability of companies, other studies have also tested the impact of company profitability on growth. Observing evidence supporting both approaches can indicate the existence of a two-way relationship between these two variables. In this regard, the present research aims to investigate the two-way relationship between growth and profitability of 173 companies listed on the Tehran Stock Exchange, during the period 1390-1382 (Iranian calendar years). First, by performing the Granger causality test, the existence of a two-way relationship between these two variables was confirmed, and then the simultaneous equations system was estimated using the two-stage regression method. The estimation results indicate the existence of a two-way relationship between growth and profitability of companies listed on the Tehran Stock Exchange. In other words, the results obtained from the simultaneous equations system have more confidence and accuracy compared to the single-equation estimation.
خلاصه ماشینی:
In this regard, the present research investigates the two-way relationship between the growth and profitability of 173 companies listed on the Tehran Stock Exchange, during the period of 1382-1390.
The estimation results indicate the existence of a two-way relationship between the growth and profitability of companies listed on the Tehran Stock Exchange.
Considering the confirmation of results in both categories of studies and also examining the existing literature regarding corporate governance, which supports a reciprocal relationship between growth and profitability (Lee, 2013), it can be concluded that there is a two-way relationship between these two variables.
On the other hand, in studies of industrial organization, market share and its growth are known as important performance indicators of a company, and a positive relationship between market share and economic profit has been proven (Sinaii & Rashidzadeh, 1388).
3 Goddard, Molyneux & Wilson (2004) used a dynamic panel of their vector autoregression model from generalized moments 4 and ordinary least squares regression and using data from 583 European banks, they investigated the two-way relationship between growth and profitability.
Jahanshad, Asgari & Esadi Koli (1390) investigated the effect of the percentage change in paid-out dividend on future growth, using data from companies listed on the Tehran Stock Exchange, during the time period 1384 to 1388.
Study Pattern As explained in the previous sections, a review of the literature and attention to the obtained results show that there is a two-way relationship between the variables of company growth and profitability, and in examining how these two variables affect each other, it is better to use a system of simultaneous equations instead of a single equation system.
(
, 
, 
)
