Determinants of profitability in the EU-15 area

Pattitoni, Pierpaolo; Petracci, Barbara; Spisni, Massimo

doi:10.1080/09603107.2014.904488

Cited by 75 publications

(102 citation statements)

References 30 publications

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“…In other words, firms having higher level of leverage in both full sample and sub-samples perform worse in terms of profitability. This finding that the leverage is negatively and significantly associated with profitability parallels the findings of Majumdar (1997) for India; Andres (2008) for Germany; Asimakopoulos et al (2009) for Greece; Nunes et al (2009) for Portugal;Pattitoni et al (2014) for the EU-15 countries, Pervan and Mlikota (2013) for Croatia; Miralles-Marcelo et al (2014) for Portugal and Spain; Poutziouris et al (2015) for UK; and Mijić et al (2016) for Serbia; among others.…”

Section: Resultssupporting

confidence: 82%

“…In this situation the coefficient estimate for firm size is anticipated to be positive. Alternatively, a negative association between size and profitability may suggest that assets are not employed efficiently (Goddard et al 2005;Pervan and Mlikota, 2013;Pattitoni et al 2014). …”

Section: Empirical Methodologymentioning

confidence: 99%

“…According to previous studies such as Greiner (1972), Nunes et al (2009), andPattitoni et al (2014), impact of growth opportunities on profitability could be ambiguous. In other words, growth opportunities may help heighten the motivation of employees and, therefore, profitability of firm.…”

Section: Growth Opportunitiesmentioning

confidence: 99%

“…Results from panel regressions with fixed effects show that firm size in terms of sales, investment and growth in sales positively affect firm profitability, whereas current assets, leverage measured by the ratio of debt to total assets, the dummies represented by the participation in European Union and the adoption of the Euro negatively influence profitability of firms. Pattitoni et al (2014) study factors influencing profitability of 30.764 private firms in the EU-15 countries for the period from 2004 to 2011 using both static and dynamic panel data estimators. Estimation results suggest that leverage, working capital, sales growth, size in terms of total assets, opportunity cost of capital, ownership structure, GDP growth and inflation rate, and return of market indices are the main determinants of firms' ROA.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul

Işık¹

2017

berj

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Section: Resultssupporting

confidence: 82%

Section: Empirical Methodologymentioning

confidence: 99%

Section: Growth Opportunitiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul

Işık¹

2017

berj

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“…Delmar et al (2013) show that growth is associated with an increase in the likelihood of survival. Pattitoni et al (2014) also find a positive impact explained by the fact that growth motivates employees and thus leads to higher profitability. Similarly, the effect in our study is positive and significant in all models with exception of the food industry in Navarre.…”

mentioning

confidence: 73%

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Zouaghi¹,

Sánchez

Hirsch

2017

Span. j. agric. res.

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Strategic management research has demonstrated the importance of firm-and industry structure as drivers of firm profitability. However, less is known about how firms´ geographical locations affect profitability. Applying a multi-level approach of hierarchical linear modeling we estimated firm-, industry-, and region-specific effects on profitability of 3,273 agri-food firms operating in different Spanish districts over the time span 2006-2013. The results reveal the dominance of firm-specific effects which contribute up to 48.8% to variance in firm profitability while the contribution of industry effects (0.8-4.2%), geographical location (0.1-1.8%), and year effects (0.1-2.5%) is rather small. Moreover, firm size, risk, and innovative activity turn out as significant profit drivers at the firm level. Although firm-effects outweigh industry-and region-specific factors, the results indicate that industry concentration as well as regional education and unemployment influence profitability. In addition, proximity to technological institutes as well as the degree of urbanization of the region in which a firm operates can be drivers of profitability. Hence, despite the superiority of firm effects the results indicate that agri-food managers should also consider possible advantages from location-based resources in order to ensure competitiveness.Additional keywords: agri-food profits; firm-, industry-, and location effects; hierarchical linear model.

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Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms

2020

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We investigate the drivers and persistence of profits in EU food retailing by focusing on differences between “top competitors” and fringe food retailers using a sample of 12,786 firms from France, Spain, and Sweden between 2006 and 2014. We detect a high degree of profit persistence in food retailing, presumably caused by strong bargaining power towards processors. Moreover, we find that profit persistence is higher for “top competitors” such as members of Top‐5 chains regarding sales and that independent/specialized supermarkets generate lower profitability. The results provide insights regarding power imbalances in food retailing and thus support the development of managerial strategies as well as measures to enhance market efficiency.

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Determinants of profitability in the EU-15 area

Cited by 75 publications

References 30 publications

Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul

Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms

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