Indicators of high potential firms' rapid growth: empirical evidence for Slovenia

In the paper, we assess the relationship between a firm's sales growth (dependent variable) and four independent variables: (1) firm size, (2) profitability, (3) educational level and (4) indebtedness. We also used control variables for industry, liability legal form and governance structure. Only the trade dummy proved to be a significant, therefore the interaction terms between the trade dummy and four independent variables were made. Using a stepwise multiple least square dummy variable regression, we identified a statistically significant and negative relationship for firm size and profitability. The impact of educational level is significantly positive, whereas indebtedness is not significant. Reprinted by permission of Vilnius University, Brno University of Technology, and University of Latvia