What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Abstract

This study focuses on the analysis of the determinants of Spanish cooperatives’ profitability. We inspect several variables, whose influence on firms’ profitability has been verified by prior literature, and we assess whether these results are confirmed in cooperatives. The data span 13 years (2008–20). We approach the analysis including: (i) firm‐specific factors, (ii) industry‐specific factors, and (iii) location factors. There is a main research question: Are there significant differences in cooperatives’ profitability depending on firm‐specific, industry‐specific and/or location factors? The results emphasize that firm‐specific effects are the most important for cooperatives’ profitability. Summarizing our findings, cooperatives’ profitability is positively affected by size, liquidity, indebtedness, regional specialization in cooperatives, location economies, and lagging profitability, and negatively affected by age and presence in international markets.

The Influence of Dividend Policy and Company Size on Company Value with Profitability as a Moderating Variable in Listed Energy Sector Companies on the Indonesian Stock Exchange 2018-2022 Period

“…Increasing profits will have an impact on increasing wealth or increasing company assets. When a company has large assets, the company will have a more stable condition (Pervan & Višić, 2012), and can help the company face risks and strengthen the company's image in the future (Ríos, 2023). This is in line with research by Sudiyatno, Puspitasari, Suwarti, & Asyif (2020) and Ilham, et al (2022).…”

“…Sudiyatno, Puspitasari, Suwarti, & Asyif, 2020). Based on the research results of Lalitha, Sandhyavani, & Sudha (2020),Ríos (2023),Putri & Mutumanikam (2022),Firda & Efriadi (2020), andPervan & Višić (2012), stated that the higher the level of company profitability indicates that the company able to manage company assets optimally in order to maximize company value. So it can be concluded that the fourth hypothesis in this research is as follows.…”