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Impacts of sustainable structural growth on the economic performance of listed companies

Author

Listed:
  • Mindaugas Laužikas

    (Vilnius University Business School, Lithuania)

  • Antanas Krasauskas

    (Vilnius University, Lithuania)

Abstract

The purpose of the present publication is to measure the impacts of structural growth on the economic sustainability of listed companies. Scientific literature overview, secondary data analysis and semi-structured qualitative interviews were combined in order to examine the effects of structural growth. The research question is how structural changes of listed companies affect their sustainable growth. Scrutinizing various cases makes it possible to tackle the patterns of sustainable structural growth, based on a type of structural change. Many researchers (such as Huang and Kleiner 2004; Deal and Kennedy 1982 or Pritchett and Gilbreath 1996 and etc.) and business analysts (such as KPMG consulting company 1999) have not found a common answer what are the key success factors of structural growth. It is related to strategic targets, due diligence activities, expenses (the transactional decision - making phase) or integration planning, the organizational culture, assimilation or dissimilation (the integration phase). Franks and Harris (1989) emphasize the increase in shareholders’ value as the main motive for structural changes. Boucher (1980) argues that the two most common reasons of structural changes are either attempts of taking opportunities present in the market, or increasing the growth. The present research, which combines the analysis of secondary data and semi-structured qualitative interviews, aims to verify various researchers’ statements. Based on the scientific literature analysis, two conceptual models are designed and verified. This should serve as the background for the further examination of the role of structural changes on a sustainable companies’ growth and new publications in the same series.

Suggested Citation

  • Mindaugas Laužikas & Antanas Krasauskas, 2013. "Impacts of sustainable structural growth on the economic performance of listed companies," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(2), pages 81-91, December.
    • Handle: RePEc:ssi:jouesi:v:1:y:2013:i:2:p:81-91
    DOI: 10.9770/jesi.2013.1.2(2)
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    References listed on IDEAS

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    Cited by:

    1. Renata Korsakienė & Manuela Tvaronavičienė, 2014. "Processes of economic development: case of Lithuanian real estate sector," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(3), pages 162-172, March.
    2. Gunnar Prause, 2014. "A holistic concept for the sustainable evaluation of company shares," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 2(1), pages 37-42, September.
    3. Kristina Garškaitė-Milvydienė, 2014. "Anti-crisis management of enterprises as precondition of sustainable entrepreneurship," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(4), pages 187-203, June.

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    More about this item

    Keywords

    mergers; takeovers; business formation; business management; performance evaluation; performance indicators; financial markets; financial management; sustainability;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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