IMPACT OF FIRM SPECIFIC FACTORS ON PROFITABILITY OF INDUSTRIAL GRINDING COMPANIES

  • Snežana Milošević Avdalović University of Novi Sad, Faculty of Economics Subotica

Abstract

In this paper, panel ordinary least squares model of industrial grinding companies listed on Belgrade Stock Exchange was used for examining the determinants of proftability. For this purpose, 62 observations of companies over the period of 2008 – 2014 were included. Return on equity considered as a measure for proftability is a dependent variable whereas size, leverage, years of frm existence, number of stock and book value per share are considered as independent variables. According to the fndings, leverage, number of stock and book value per share are statistically significant of inverse relationship with proftability for selected listed industrial grinding companies in Serbia. Size (+) and age (-) indicate insignifcant impacts on proftability. The results revealed that all independent variables explain 84.4% of the variance on return on equity. The results of Granger causality test indicated causality between proftability and leverage, proftability and number of stocks are bidirectional.

Downloads

Download data is not yet available.

References

1. Adams, M., & Buckle, M. (2003). The determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13(2), 133-143. doi: 10.1080/09603100210105030
2. Al-Jafari1, M.K., & Al Samman, H. (2015). Determinants of Proftability: Evidence from Industrial Companies Listed on Muscat Securities Market. Review of European Studies, 7(11), 303-311. doi:10.5539/res.v7n11p303
3. Asimakopoulos, I., Samitas, A., & Papadogonas, T. (2009). Firm-specifc and economy wide determinants of frm proftability: Greek evidence using panel data. Managerial Finance, 35(11), 930-939.
4. Azhagaiah, R., & Deepa, R. (2012). Determinants of Proftability of Food Industry in India: A Size-Wise Analysis. Management, 7(2), 111-128.
5. Bhayani, S. J. (2010). Determinants of proftability in Indian cement industry: An economic analysis. South Asian Journal of Management, 17(4), 6-20.
6. Goddard, J., Tavakoli, M., & Wilson, J. O. (2005). Determinants of proftability in European manufacturing and services: evidence from a dynamic panel model.Applied Financial Economics, 15(18), 1269-1282. doi: 10.1080/09603100500387139
7. Kroupova, Z. Z. (2016). Proftability development of Czech dairy farms. Agricultural Economics (Zemědělská ekonomika), 62(6), 269-279.
8. McDonald, J. T. (1999). The determinants of frm proftability in Australian manufacturing. Economic Record, 75(2), 115-126.
9. Nunes, P. J. M., Serrasqueiro, Z. M., & Sequeira, T. N. (2009). Proftability in Portuguese service industries: a panel data approach. The Service Industries Journal, 29(5), 693-707. doi: 10.1080/02642060902720188
10. Pratheepan, T. (2014). A panel data analysis of proftability determinants empirical results from Sri Lankan manufacturing companies. International Journal of Economics, Commerce and Management, 12(2) 1-9.
11. Sivathaasan, N., Tharanika, R., Sinthuja, M., & Hanitha, V. (2013). Factors determining proftability: A study of selected manufacturing companies listed on Colombo Stock Exchange in Sri Lanka. European Journal of Business and management, 5(27), 99 – 107.
12. Stekla, J., & Grycova, M. (2016). The relationship between proftability and capital structure of the agricultural holdings in the Czech Republic.Agricultural Economics (Zemědělská ekonomika), 62(9), 421–428.
13. Tomsik, P., Stojanova, H., Sedlo, J., & Vajcnerova, I. (2016). Factors of proftability of the grapes production. Agricultural Economics (Zemědělská ekonomika), 62(6), 292-297.
14. Vătavu, S. (2014). The determinants of proftability in companies listed on the Bucharest stock exchange. Annals of the University of Petrosani, Economics, 14(1), 329-338.
15. Yazdanfar, D. (2013). Proftability determinants among micro frms: evidence from Swedish data. International Journal of Managerial Finance, 9(2), 151-160.
Published
2018-06-27
How to Cite
MILOŠEVIĆ AVDALOVIĆ, Snežana. IMPACT OF FIRM SPECIFIC FACTORS ON PROFITABILITY OF INDUSTRIAL GRINDING COMPANIES. Economics of Agriculture, [S.l.], v. 65, n. 2, p. 493-501, june 2018. ISSN 2334-8453. Available at: <http://ea.bg.ac.rs/index.php/EA/article/view/474>. Date accessed: 25 sep. 2018. doi: https://doi.org/10.5937/ekoPolj1802493M.
Section
Original scientific papers