Performance and size: empirical evidence from Portuguese SMEs

Serrasqueiro, Zélia; Nunes, Paulo Maçãs

doi:10.1007/s11187-007-9092-8

Cited by 158 publications

(152 citation statements)

References 69 publications

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“…Our findings suggesting that firm size measures are positively associated with profitability indicator in a linear manner are consistent with the findings of Serrasqueiro and Nunes (2008) for Portugal, Stierwald (2010) for Australia, Mule et al (2015) for Kenya, Liu et al (2014) for China, Işık (2017) for Turkey, Majumdar (1997) for India, Prasetyantoko and Parmono (2009) for Indonesia, Pervan and Višić (2012) for Croatia, but contradict the results of Goddard et al (2005) for European countries, Niresh and Velnampy (2014) for Sri Lanka, Becker-Blease et al (2010) for the US, and Veprauskaitė and Adams (2013) for the UK. The results regarding the quadratic association are not consistent with those of Pattitoni et al (2014) and Lee (2009).…”

Section: Findings and Discussionsupporting

confidence: 91%

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

Işık¹,

Ünal²,

Ünal³

2017

Pressacademia

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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.

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Section: Findings and Discussionsupporting

confidence: 91%

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

Işık¹,

Ünal²,

Ünal³

2017

Pressacademia

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“…Large firms are able to utilize their economies of scale on periodic basis to maximize sales and value added. The study finding is in line with Serrasqueiro et al (2008) who argue that large firms are more likely to exploit economies of scale and enjoy higher negotiation power over their clients and suppliers. The study finding is also in line with Yang and Chen (2009) who argue that large firms face less difficulty in getting access to credit for investment, have broader pools of qualified human capital, and may achieve greater strategic diversification and be able to perform better that small firms.…”

Section: Wwwccsenetorg/jplsupporting

confidence: 89%

The Effects of Tax Incentives on Firm Performance: Evidence from Uganda

Mayende¹

2013

JPL

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This paper attempts to analyse the effects of tax incentives on the performance of Ugandan manufacturing firms in terms of gross sales and value added employing panel data estimation techniques. The study findings show that firms with tax incentives perform better in terms of gross sales and value added than their counterparts. The education level of managers of firms, firm-size, and age of the firm have positive impact on firm performance. The major policy implication of the study findings indicates that Government needs to streamline the provision of tax incentives for better firm performance. Access to quality and technical education and skills development is necessary in order to have qualified managers with high level of management skills to utilize the available tax incentives so as to improve firm performance.

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“…The hypothesis test, summarized in Table 3, reveals that only size and growth of the firm have a significant relationship with the profitability of IT firms, which is consistent with the findings of Hall and Weiss [29], Serrasqueiro and Nunes [31], Lee [32], and Stierwald [33] that have all concluded that size of the firm is significantly positively related to the profitability of firms. However, it contradicts with the findings of Khatab et al [34] whose findings have shown an insignificant relation between profitability and firm size.…”

Section: Discussion Of the Findingssupporting

confidence: 82%

Firm Profitability and Capital Structure: An Empirical Study on the Listed It Companies of Bangladesh

2018

ABLE-18, ICLHESS-18 &Amp; MLEIS-18

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Background of the StudyCapital Structure is imperative in ensuring sound financial management and profitability of a company. Since one of the key responsibilities of financial managers is to maximize shareholders' wealth, finding the right mix of financial instruments to fund the operation of the business is quintessential to enhance its growth and profitability [1]. Weston and Brigham [2] defined capital structure as the permanent financing of the firm represented by long-term debt, preferred stock and net worth. The capital structure of the company is a mix of various financial securities, i.e. issuing of large amount of debt (leverage), arranging lease financing, using warrants, convertible bonds, swaps, equity or a combination of other securities to best fit its financial needs. The objective is to collaborate a mix of instruments with the lowest cost that will maximizes overall market value of the company. Planning a capital structure involves the consideration of shareholders' interests; the risk associated with each funding choice; and the significant effect if would have in appropriating funds for immediate and future projects [3].Traditionally, financial advisers and experts have constantly argued on how a company's leverage affects the firm value, with numerous findings on both sides of the spectrum [4] [5]. Most research [6][7][3][4] focused on all listed companies irrespective of industry and showed the significance of leverage, current ratio, cash ratio, tax rate and size on the performance of firms. However, no one optimal capital structure could be determined, as profitability and capital structure tend to vary for firms: operating in different industry; of variable size; and, operating in diverse economies [7].

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Performance and size: empirical evidence from Portuguese SMEs

Abstract: Dynamic estimators, Performance, Size, Small and medium-sized companies, G31, G32, L26,

Cited by 158 publications

References 69 publications

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

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

The Effects of Tax Incentives on Firm Performance: Evidence from Uganda

Firm Profitability and Capital Structure: An Empirical Study on the Listed It Companies of Bangladesh

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