Level of Growth and Accounting Profitability in Corporate Value Creation Strategy

Erni Ekawati (Universitas Kristen Duta Wacana)

The Indonesian Journal of Accounting Research
Vol 8, No 1 (2005): JRAI January 2005

This research examines associations between level of growth and accounting profitability drawn from corporate value creation strategy. Results demonstrate that although the accounting profitability measures generally rise with sales growth, an optimal point exists beyond which further growth contributes to value destruction and adversely affects profitability.