Comparing the impact of co-determinants on return on assets: focusing on Business Strategies

Subject Areas : Management Accounting

فرزین  رضایی ¹ (ندارد)
رضا  محسنی ² (ندارد)
مریم  رایقی ³ (ندارد)

Received: 2012-11-05 Accepted : 2013-01-29 Published : 2013-09-16

Keywords: assets' age, growth of assets, Cost leadership, product differentiation, return on net&#x0D, &#x0D, operational as,

Abstract :

The present study investigates the impact of assets' age and business strategies on therelationship between the growth of assets and the operational performance of the companies.return on net operational assets is considered to be the representatives of the operationalperformance of the companies. For this purpose, a sample including 86 companies listed atTehran's stock exchange during the 2006 and 2010 has been studied. By doing hierarchicalcluster analysis, the companies were categorized into two clusters of cost leadership andproduct differentiation. In order to analyze and examine the relationship between the variablesin our study, the approaches of balanced panel data was used. The results show that there's asignificant relationship between and the assets' age operational performance of the companies.These findings underline the influence of the variables of the assets' age and businessstrategies on the relationship between growth of the assets and the performance of thecompanies. These results indicate that the impact of factors on the growth of assets in thecompanies with older assets is more intensive. From the other hand, the findings show that theimpact of the growth of the assets in the companies following the product differentiationapproach is negative. Since the main key to success in investments is to determine eachcompany’s particular competitive advantage and the stability thereof; hence, the empiricalresults of these strategic concepts could provide a useful mechanism for entrepreneurs inorder to gain a better future performance.

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