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Article
INDICATORS OF HIGH POTENTIAL FIRMS' RAPID GROWTH: EMPIRICAL EVIDENCE FOR SLOVENIA
Karin Sirec, Dijana Mocnik
ABSTRACT.In the paper, we assess the relationship between a firm's sales growth (dependent variable) and four independent variables: (1) firm size, (2) profitability, (3) educational level and (4) indebtedness. We also used control variables for industry, liability legal form and governance structure. Only the trade dummy proved to be a significant, therefore the interaction terms between the trade dummy and four independent variables were made. Using a stepwise multiple least square dummy variable regression, we identified a statistically significant and negative relationship for firm size and profitability. The impact of educational level is significantly positive, whereas indebtedness is not significant.
KEYWORDS: high-growth firms, gazelles, small and medium enterprises, regression analysis, Slovenia.
JEL classification: L25, L26.