Driving factors for growing companies

Sammanfattning: Finding a way to forecast what characteristics make a fast growing company would be useful, both for companies trying to succeed and for investment companies wanting to make successful investments. This thesis aims to develop a model describing the relationship between 9 chosen characteristics, based on real data from 2015 concerning companies that were rewarded with a DI Gasell in 2018. The final result show that half of the variables chosen to form the model have little to no relationship with the response variable EBIT margin. However, the final model consists of four variables that with statistic significance correlates with the response variable. The explanatory level is low and implies that forecasting companies growth probably can’t be done using this model. The four regressors that correlate with EBIT margin are Year of Incorporation, Operatingrevenue, Number of subsidiaries & SNI code. Although a forecast can’t be performed other insight are obtained from the research. Companies with SNI code 4, which corresponds to operating in the economic sector, affects EBIT margin in a more positive way than other sectors. Number of subsidiaries correlates fairly linearly with the response variable. Contradictory to previous research CEO characteristics are shown to be the least important factor contributing to profitability.