The Role of Return on Assets on the Effect of Value Added Capital Employed towards Business Growth

DOI

10.2991/aicar-18.2019.17How to use a DOI?

Keywords

business growth; moderating regression of panel data; return on assets; value added capital employed

Abstract

Previous studies show the testing of return on asset and other variables using the same measurement period, have not given significant empirical result. Therefore, this research takes a crack at the using different measurement period of return on assets. This research aims to investigate whether return on assets in previous period is moderating the influence of value added capital employed towards business growth. A total of 261 observations were used to assess overall fit of the tested model and test hypotheses using moderating regression of panel data. The findings show that using the fixed effects model of panel data, one of intellectual capital element, the value added capital employed, is weakened by return on assets in previous period in influencing business growth. Knowing the importance of strengthen/weakened value added capital employed can help companies focus on what business growth the most.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ari Purwanti
PY  - 2019/02
DA  - 2019/02
TI  - The Role of Return on Assets on the Effect of Value Added Capital Employed towards Business Growth
BT  - Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)
PB  - Atlantis Press
SP  - 76
EP  - 78
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicar-18.2019.17
DO  - 10.2991/aicar-18.2019.17
ID  - Purwanti2019/02
ER  -