Shareholder value creation at excessive growth levels: Empirical evidence from Turkey

In this study, to determine value creation rates at high and moderate growth levels, 8 years data of 167 non-financial companies of Borsa Istanbul is employed in a panel data analysis. The study found that growing significantly above sustainable growth rate is systematically associated with value destruction. It is also demonstrated that shareholder return is a concave function of firm growth, proposing an optimal point of sales growth beyond which further growth destroys shareholder value.