Abstract
The purpose of this study is to find the factors that affect potential growth of Canadian firms. This study also seeks to extend the study of Mateev and Anastasov [1]. A sample of 164 Canadian firms listed on the Toronto Stock Exchange for a period of 3 years (from 2008-2010) was selected. This study applied co-relational and non-experimental research design. The findings of this paper show that potential growth of Canadian firms is affected by firm size, current liquidity, leverage, cash flow, age, and industry. This study contributes to the literature on the factors that affect potential growth of the firm. The findings may be useful for financial managers, investors, and financial management consultants.