Document Type : opinion article

Authors

• Mohammad Reza Mehrabanpour ¹
• Haider Rabiei ²

¹ Assistant Professor, University of Tehran Faculty member of Tehran University

² Professor at the University of Tehran and financial, economic and investment strategies consultant

Abstract

In some cases, management objectives conflict with shareholders objectives, and accordingly, management behavior, policy, and performance may lead to losses or losses for the organization. According to agency theory, asset growth stems from management expansionism, and although investment choices are in line with shareholders’ objectives in terms of increasing the volume of assets, they may lead to losses and bankruptcy of companies in the following years.
The asset growth ratio of companies is defined as a criterion of interest to users of financial information. Therefore, accountants and accounting professionals should pay attention to this criterion. The reasons and factors that cause growth in assets should be considered, discussed, and studied. By recognizing the factors that affect the growth of assets, users of accounting information and financial reports can be helped in making better decisions.

Keywords

• Asset growth
• economic perspective
• life cycle
• resource management

Main Subjects

• Accounting
• Audit
• Financial Management
• Financial Engineering