The level of persistence and predictability in growth in operating performance for Australian firms

Tochterman, Matthew. (2004). The level of persistence and predictability in growth in operating performance for Australian firms Honours Thesis, School of Business, The University of Queensland.

       
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Author Tochterman, Matthew.
Thesis Title The level of persistence and predictability in growth in operating performance for Australian firms
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 2004
Thesis type Honours Thesis
Total pages 92
Language eng
Subjects 1503 Business and Management
Formatted abstract This paper examines the level of persistence and predictability in growth in operating performance for firms listed on the ASX from 1987 to 2003. The measures of operating performance analysed were: sales; earnings before interest, tax, depreciation and amortisation; and net profit after tax before abnormals.

Persistence in growth was present, however, this persistence was more apparent in small firms compared to large firms. Also, high book-to-market equity firms displayed more persistence than low book-to-market equity firms. The level of persistence was affected by the sampling methods applied to the data.

This study found that the earnings-to-price, sales-to-price and book-to-market equity ratios provided no predictive power in forecasting growth. The book-to-market equity ratio was found to be a function of past growth not future growth. This provided further evidence of investors considering the prospects of a firm conditional on past performance.
Additional Notes Variant title: Persistence and predictability of growth for Australian firms

 
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Created: Wed, 10 Nov 2010, 12:26:11 EST by Muhammad Noman Ali on behalf of The University of Queensland Library