Purpose -The purpose of this paper is to examine the determinants of profitability for a sample of Greek non-financial firms listed in the Athens Stock Exchange for the period 1995-2003. This is a very important period for the Greek economy on the way to European monetary union (EMU). Design/methodology/approach -The methodologies employed include panel data estimation techniques. This research attempts to exploit the determinants of firm profitability of non-financial Greek firms listed in Athens Exchange utilizing firm-specific publicly available accounting variables using panel data estimation techniques rather than cross-sectional analysis. Findings -According to the findings, firm profitability was positively affected by size, sales growth and investment and negatively by leverage and current assets. Additionally, we found that the EMU participation and the adoption of the euro were negatively related to firm profitability. Practical implications -Taking into account the fact that the Greek economy has undergone significant transformation during the period under examination on its way to join EMU and to adopt the euro currency, a model has been formulated where both firm-specific and economy wide factors determine firm profitability. Originality/value -This paper focuses on a less developed and efficient stock market. In contrast to previous studies that did not take into account the convergence of the Greek economy to EMU averages and the subsequent adoption of the euro, this paper analyses data for the pre-EMU and the post-EMU periods in an attempt to quantify a potential macroeconomic effect on firm-specific profitability.

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This paper examines job construction and destruction patterns in Greek manufacturing for the period 1995–99, just before Greece's entry to the European Monetary Union (EMU). The analysis uses descriptive statistics and regression models and is performed on a longitudinal sample of 6164 firms, classified by size of employment and by manufacturing sector. The results show the dynamic role small‐ and medium‐sized firms play in net employment creation in Greek manufacturing. High technology and capital‐intensive manufacturing sectors contribute mostly to net employment growth. Age of the firm is adversely connected to employment growth, while export activity and location of firms contribute significantly in net job creation. Significant determinants to employment growth are firm size, age, profitability, sales growth, reliance on debt and investment in new fixed assets. Economic policy measures are suggested to promote the establishment and survival of new small manufacturing firms, and the growth of the surviving ones.

Exit, Technical inefficiency, Stochastic frontier models, C21, C23,