Competitiveness and profitability: The case of chemicals, pharmaceuticals and plastics

Voulgaris, Fotini; Lemonakis, Christos

doi:10.1016/j.jeca.2014.04.003

Cited by 32 publications

(26 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…An improvement in economic conditions is more likely to affect the aggregated demand and supply and thus profitability of the firm (Lee, 2009;Pattitoni et al, 2014;Voulgaris & Lemonakis, 2014). We anticipate a positive coefficient for economic growth.…”

Section: Methodsmentioning

confidence: 82%

“…Profitability is expected to increase as firm's size increases in view of the economies of scale hypothesis but agency problems between firm managers and shareholders of the firm cause the profitability to decrease, suggesting that a larger firm size is likely to be associated with lower profitability (Voulgaris & Lemonakis, 2014;Pattitoni et al, 2014;Hatem, 2014).…”

Section: Methodsmentioning

confidence: 99%

“…On one side, an adequate level of liquidity could help firms to expand their operations, pay their debts on time and take advantage of long-term profitable investment opportunities (Goddard et al, 2005). On the other side, According to the finance theory, having excessive liquidity not only reduces the risk of liquidity, but is also detrimental to firm's profitability (Myers & Rajan, 1998;Çakır & Küçükkaplan, 2012;Voulgaris & Lemonakis, 2014). Therefore, the sign of coefficient of this ratio may be positive or negative.…”

Section: Methodsmentioning

confidence: 99%

“…Analyzing the determinants of firm profitability in manufacturing industry is crucial with regard to the country's economy and industrialization (Voulgaris & Lemonakis, 2014). At the macro-level, manufacturing industry is one of the strategically significant sectors making a major contribution to the development of Turkish economy.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

Işık¹,

Tasgin²

2017

IJEF

View full text Add to dashboard Cite

Our paper empirically analyses the factors that determine the profitability of 120 manufacturing firms listed in Borsa Istanbul Stock Exchange during the period 2005-2012. Estimation results from dynamic panel data model taking into account the endogeneity of variables indicate that lagged profitability, firm size, financial risk, R&D costs, net working capital, and economic growth are the most important variables affecting firm profitability. More specifically, profitability is positively and significantly affected by past profitability, firm size in terms of total sales, net working capital, and economic growth. On the other hand, R&D costs and financial risk have a dampening effect on the profitability.

show abstract

Section: Methodsmentioning

confidence: 82%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

Işık¹,

Tasgin²

2017

IJEF

View full text Add to dashboard Cite

show abstract

“…We attempt to answer to this question as the following. In accordance with the economies of scale hypothesis, large firms are likely to enhance their profitability by minimizing their costs stemming from their production process (Amato and Wilder, 1985;Majumdar, 1997;Goddard et al 2005;Becker-Blease et al, 2010;Stierwald, 2010;Voulgaris and Lemonakis, 2014;among others). Furthermore, large firms exploiting their size may have access to the public debt markets in an easier and cheaper way in order to fulfil their _________________________________________________________________________________________________ DOI: 10.17261/Pressacademia.2017.762 302 financing needs.…”

Section: Introductionmentioning

confidence: 94%

The Effect of Firm Size on Profitability: Evidence From Turkish Manufacturing Sector

Işık¹,

Ünal²,

Ünal³

2017

Pressacademia

View full text Add to dashboard Cite

Purpose -This study investigates whether size of 112 publicly listed firms in manufacturing sector affects their profitability in Turkey during the period 2005-2013. Methodology -Dynamic panel data approach (i.e. two-step system GMM estimator) taking into account potential endogeneity of firm-level variables is employed to estimate the effect of alternative firm size indicators on firm profitability. Findings-Estimation results suggest that after controlling for financial risk, liquidity level, growth opportunities, unsystematic risk, firm age, and the other factors, the indicators of firm size measured by firm's assets, sales and number of employees tend to have a positive influence on the profitability of firm measured by operating return on assets. Conclusion-There is enough statistical evidence to support a linear relation between firm size measures and profitability of firms in the period analyzed. However, our empirical results do not support the quadratic or cubic association between size measures and profitability.

show abstract

Impact of asset preferences on firm performance over its life cycle: Is agency theory or neo‐classical theory more relevant?

Ramzan

Lau

2022

Manage Decis Econ

View full text Add to dashboard Cite

This study extends Dickinson's (2011) firm life cycle classification approach by linking it with the asset preferences and firm performance. This study also resolves the contention between agency theory and neo-classical theory. Based on the data of S&P 500 firms from 2000 to 2019, our results show: First, the effect of current assets on basic earnings per share (BEPS), return on assets (ROA) and Tobin's Q ratio (TQR) decreases from the introduction to decline stage. Second, the influence of fixed assets on TQR increases from the introduction to the declining stage. Our findings suggest that both theories are relevant, and asset acquisition influences the productivity and performance of the firms.

show abstract

Competitiveness and profitability: The case of chemicals, pharmaceuticals and plastics

Cited by 32 publications

References 28 publications

Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

The Effect of Firm Size on Profitability: Evidence From Turkish Manufacturing Sector

Impact of asset preferences on firm performance over its life cycle: Is agency theory or neo‐classical theory more relevant?

Contact Info

Product

Resources

About