Corporate Governance and Firm Growth: Empirical Analysis of a Panel of High Tech Manufacturing Firms in US

This study explores how firm growth is influenced by firm size, firm age, corporate governance quality and financial factors, more specifically, profitability and financing constraint. For this purpose, we use a panel of 216 observations from 72 publicly traded high-tech manufacturing companies. The result indicates that the growth of firms is significantly affected by their size and their age. The empirical results indicate a positive but insignificant association between corporate governance quality and firm growth. According to our analysis the growth rate of firms is positively correlated with their profitability. Our findings also reveal that financial constraints have negative impact on firm growth.