The financial performance of large and small firms: evidence from Greece

Papadogonas, Theodore

doi:10.1504/ijfsm.2007.011668

Cited by 55 publications

(49 citation statements)

References 8 publications

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“…This was consistent with Vijayakumar and Tamizhselvan (2010); Papadogonas (2007); Bhutta and Hasan (2013) who found a positive relationship between firm size and profitability. Lee (2009) while examining the role that firm size played in profitability found out that the firm size played an important role in explaining profitability.…”

Section: Discussionsupporting

confidence: 89%

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Odalo¹,

Achoki²,

Njuguna³

2016

IJEF

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Company/firm size is among the many variables that is significant in assessing the profitability of a company. Therefore, this paper seeks to evaluate the effect of company size on the financial performance of listed agricultural companies in Kenya. The theory of economies of scale that links benefits arising from company size, cost management and production volumes was utilized. Secondary data was extracted from the annual reports comprising of financial statement from the period 2003 to 2013 and analyzed using a pooled OLS model. Company size was measured using the total assets (Log of assets) while financial performance was measured by return on assets (ROA), return on equity (ROE) and earnings per share (EPS). The regression results present the goodness of fit for the regression between log total asset and ROA, ROE and EPS as 0.112, 0.113 and 0.074 respectively. The overall model of ROA, ROE and EPS was significant with F statistic of 9.334, 11.096 and 5.901 respectively. The relationship between log total asset and financial performance measures was positive and significant for ROA (b1= 0.033, p value, 0.003) and ROE (b1= 0.049, p value, 0.001) and. EPS (b1= 3.866, p value, 0.018). These results indicate that company size as measured by total assets affects financial performance of agricultural companies listed in NSE positively and significantly. Company size had positive and statistical significance on all the three indicators of the financial performance disclosing that large companies were found to have a competitive advantage over small firms.

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Section: Discussionsupporting

confidence: 89%

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Odalo¹,

Achoki²,

Njuguna³

2016

IJEF

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“…From testing hypotheses, and investigating preceding studies, there are three conclusions can be drawn: The first one is; there is no statistically significant effect of the insurance firm's age on its profitability, This result consistent with the studies' results of Papatogonas (2007) and found positive significant relationship between firm's age and profitability. The second conclusion is; there is a statistically significant effect of the insurance firm's size on its profitability, this result consistent with studies' results of The studies of Ilaboya et al (2016), Abiodun (2013), and doesn't consistent with the studies' results of Becker-Blease et al, (2010) Goddard et al (2005), Amato and Burson (2007), Niresh and Velnampy (2014), and Vijayakumar & Tamizhselvan (2010).…”

Section: Discussionsupporting

confidence: 77%

The Effect of Firm's Age, Size and Growth on Its Profitability: Evidence from Jordan

2020

EJBM

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This study aims at testing the effect firm's age, size and growth on its profitability based on the financial data of (22) Jordanian insurance firms that are registered in the Amman Security Exchange (ASE) during the period (2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017). They represent 95.2 % of insurance firms. The study relied on secondary data of insurance firms that have been published on their website and on ASE website In the study, the mean, standard deviations were used to describe the characteristics of the variables. Simple regression analysis was used to test the study's hypotheses.Simple. the skewness test of all variable is used to know if they have a normal distribution.The study shows that there is an insignificant effect of the insurance firm's age, size, and growth on its profitability. It recommends financial managers to analyze the relationship between a firm's age, size, growth, and profitability before making any decision in the fields of expanding business, renewing assets, manufacturing high-quality products and appointing new employers. In a recession period, managers should not adopt a strategy to achieve high growth in the short run, they should also reduce the size of the firm's operations. These procedures are important for these firms to maintain a balance between growth and profitability.

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“…Empirical evidence shows that the age of a firm positively or negatively affects its profitability. A positive relationship means the longer a firm has been in existence, the higher its profitability ( (Papadogonas, 2007;Halil and Hasan, 2012;Akinyomi and Olagunju, 2013) as cited in Ilaboya & Ohiokha, 2016). A negative relationship on the other hand implies the longer a firm's existence, the lower its profitability ( (Majumdar, 1997;Coad et al, 2007;Doğan, 2013) as cited in Ilaboya & Ohiokha, 2016).…”

Section: Agementioning

confidence: 99%

The Impact of Capital Structure on Profitability of Commercial Banks in Ghana

Musah

2018

Asian Journal of Economic Modelling

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Article History KeywordsCapital structure Commercial banks Profitability Ghana. JEL Classification: D24The study examined the effect of capital structure (measures as short term debt ratio, long term debt ratio, and total debt ratio) on profitability (measured as Return on Assets and Return on equity) of commercial banks in Ghana. The study sampled 23 banking over a six year period from 2010 to 2015 and extracted data from the annual of these banks. Data was analysed using descriptive statistics, correlation analysis as well as panel regression analysis. The results showed that banks in Ghana are highly leveraged with debt financing constituting 84% of total capital out of which 77% is short term debt despite the increase in minimum equity capital of these banks. The regression analysis revealed that short term debt ratio and long term debt ratio are negatively related with profitability of banks in Ghana. However, total debt ratio was positively associated with profitability of Banks in Ghana. On the control variables, firm size, foreign ownership and age of the bank were positively associated with banks profitability whiles growth in customers' deposits was negatively associated with banks' profitability. The results show that commercial banks in Ghana reliance on short term financing (deposits) reduces banks profitability and as such banks should shift their financing focus from deposits to other sources. The results call for firms to choose the right mix of short term and long term debt that will maximize profitability of bank. Contribution/ Originality:The study contributes to literature by examining the impact of capital structure on banks profitability in the context of regulated equity capital for commercial banks both listed and non-listed. The study is among the few capital structure and performance studies on banks is developing countries. The study serves as a basis for future research into the right mix of capital for commercial banks in Ghana that will enhance profitability.

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The financial performance of large and small firms: evidence from Greece

Cited by 55 publications

References 8 publications

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

Relating Company Size and Financial Performance in Agricultural Firms Listed in the Nairobi Securities Exchange in Kenya

The Effect of Firm's Age, Size and Growth on Its Profitability: Evidence from Jordan

The Impact of Capital Structure on Profitability of Commercial Banks in Ghana

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