The Theoretical Relationship between the Strategic Objective of Sales Growth and the Financial Policy of the Entrepreneurial Firm

ANDREAS MERIKAS IS WITH THE Department of Finance, Mississippi State University, Garry D. Bruton with the Department of Management and Marketing, University of Tulsa, Oklahoma, and George S. Vozikis holds the Alvan H. Chapman Jr. Chair in Business Administration, at The Citadel, Charleston, South Ca...

Full description

Saved in:
Bibliographic Details
Published in:International small business journal 1993-04, Vol.11 (3), p.59-67
Main Authors: Merikas, Andreas, Bruton, Garry D., Vozikis, George S.
Format: Article
Language:English
Subjects:
Business growth
Capital structure
Debt financing
Entrepreneurs
Equity
Financial planning
Objectives
Profitability
Profits
Retained earnings
Retention
Sales
Small business
Strategy
Studies
Theory
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:ANDREAS MERIKAS IS WITH THE Department of Finance, Mississippi State University, Garry D. Bruton with the Department of Management and Marketing, University of Tulsa, Oklahoma, and George S. Vozikis holds the Alvan H. Chapman Jr. Chair in Business Administration, at The Citadel, Charleston, South Carolina, all in the United States of America. The purpose of this paper is to develop a simplified theoretical model which integrates an entrepreneurial firm's strategic objective of sales growth with its capital structure and dividend policy objectives. Several theoretical relationships are developed betweent hese strategic and financial objectives, showing their strong interdependency, and the fact that the ultimate goal should be the management of this relationship rather than the maximisation of sales growth.
ISSN:0266-2426
1741-2870
DOI:10.1177/026624269301100304