Date of Conferral

2020

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Craig Martin

Abstract

Many businesses experience financial deterioration after a growth period. Business leaders of firms with market capitalization value between $50 million and $300 million, known as microcap companies, might have an incomplete understanding of growth drivers. Grounded in the firm growth theory, the purpose of this quantitative, correlational study was to examine the relationship between liquidity, growth strategy, capital structure, and earnings growth. The population consisted of the more than 1,400 constituent firms from the 2019 Russell Microcap Index. Archival data from the Securities and Exchange Commission EDGAR database were collected, organized, and analyzed for 119 randomly selected firms. Multiple regression was used to identify a predictive model. The results indicated no statistically significant relationship between liquidity, growth strategy, capital structure, and earnings growth; F (3, 108) = 2.22, p = 0.90, R2 = 0.058. The current study’s findings might encourage business leaders to alter their assumptions about liquidity, growth strategy, and capital structure as determinants of earnings growth. The implications for positive social change include the potential for increased donations to support social programs in the local community and local economic stability.

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