Company growth and growth opportunities on the example of some EU stock exchanges in the light of market characteristics

• Authors: Monika Bolek , Agata Gniadkowska-Szymańska , Piotr Pietraszewski

Title variants

PL

Rozwój firmy i możliwości wzrostu na przykładzie niektórych giełd UE w świetle specyfiki rynku

Abstracts

PL

Niniejszy artykuł analizuje związek między miarami możliwości rozwoju a przyszłym rozwojem firm. Jeśli istnieje korelacja między potencjałem wzrostu firmy a jej realnym wzrostem, rynki są bardziej przewidywalne i efektywne. Badanie zostało przeprowadzone na przykładzie następujących rynków europejskich: Austrii, krajów bałtyckich, Węgier, Francji, Polski i Niemiec. Celem artykułu jest ocena związku między miarami szans rozwojowych a przyszłym rozwojem spółek notowanych na giełdach niektórych rynków w Unii Europejskiej. Rozpatrywane kraje można sklasyfikować według wielkości państwa, płynności rynku i rozwoju rynku giełdowego. Oczekiwano, że te czynniki zewnętrzne wpłyną na siłę wzrostu. Stwierdzono, że miary możliwości wzrostu oparte na cenach rynkowych mają moc prognostyczną dla przyszłego rozwoju firm. Są one również silnie powiązane z przyszłym rozwojem firm w dużych krajach i słabo powiązane z przyszłym wzrostem w małych krajach. Niniejsze opracowanie uzupełnia literaturę na temat zastosowania miar szans wzrostu w odniesieniu do cech rynku. Uzyskane wyniki są zgodne z poglądem, że płynność rynku powinna zwiększać jego efektywność w ujawnianiu wartości akcji oraz z hipotezą wszechstronnej przewagi dużych krajów.

EN

This paper analyzes the relationship between growth opportunity measures and the future growth of companies. If there is a correlation between a company’s growth potential and its real growth, then the markets are more predictable and effective. The survey was conducted on the example of the following European markets: Austria, the Baltic Countries, Hungary, France, Poland, and Germany. The goal of this paper is to assess the relationship between growth opportunity measures and the future growth of companies listed on the stock exchanges of some markets in the European Union. The countries considered can be classified according to the size of the state, market liquidity, and the maturity of the exchange. Those external factors were expected to influence the strength of the growth and its opportunity relationship. It was found that growth opportunity measures based on market prices have predicting power for the future growth of companies. They are also strongly related to companies’ future growth in large countries and weakly related to future growth in small countries. This paper adds to the literature on the application of growth opportunity measures regarding market characteristics. These results are in line with the view that market liquidity should increase its efficiency in revealing the value of stocks and the Comprehensive Advantage of Large Countries hypothesis.

Keywords

PL

rozwój firmy; możliwości rozwoju firmy; rynek giełdowy

EN

company growth; growth opportunities; stock markets

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Acta Universitatis Lodziensis. Folia Oeconomica
• Year: 2022
• Volume: 2
• Issue: 359
• Pages: 63-100

Dates

published

2022

Contributors

author

Monika Bolek

• University of Lodz, Faculty of Economics and Sociology, Department of Corporate Finance, Poland, Lodz

• https://orcid.org/0000000193761105

author

Agata Gniadkowska-Szymańska

• University of Lodz, Faculty of Economics and Sociology, Department of Capital Market and Investments, Poland, Lodz

• https://orcid.org/0000000273213360

author

Piotr Pietraszewski

• University of Lodz, Faculty of Economics and Sociology, Department of Capital Market and Investments, Poland, Lodz

• https://orcid.org/0000000205890327

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Identifiers

DOI

10.18778/0208-6018.359.04

Biblioteka Nauki

2154160