MODELLING OF GROWTH FACTORS OF COFFEE PROCESSING COMPANIES
DOI:
https://doi.org/10.5937/ekoPolj2102435NKeywords:
growth, financial statement, coffee market, panel analysisAbstract
In this paper, the growth factors of coffee processing companies in the Republic of Serbia were analyzed by panel data technique. The growth was measured by changes in sales, while as explanatory variables were defined the following: export, size, capital turnover, revenue cycle, current ratio (liquidity ratio), debt ratio and return on assets. The empirical examination was conducted on the basis of 160 observations of financial statements of companies in coffee market. The results show that coffee processing companies in the Republic of Serbia have an average positive growth rate (1.08) during period 2015- 2018. Growth of coffee processing companies is significant negatively related to size, revenue cycle and current ratio. On the other side, profitability measured as return on assets has positive significant impact on firm growth. The results show the performances of coffee processing companies during period 2015-2018 and the profile of growth factors as a prerequisite for companys development. This information can be useful for the large number of internal and external users of financial statements in the process of decision making.
Downloads
Download data is not yet available.
References
1. Adkins, L. (2014). Using gretl for Principles of Econometrics, 4th Edition Version 1.0411. Oklahoma State University, Oklahoma, USA.
2. Al-Abdulkader, A.M., Al-Namzi, A.A., AlTurki, T.A., Al-Khuraish, M.M., & AlDakhil, A.I. (2018). Optimizing coffee cultivation and its impact on economic growth and export earnings of the producing countries: The case of Saudi Arabia. Saudi Journal of Biological Sciences. 25(4), 776-782.
3. Aljinović, Z., & Marasović, B. (2012). Mathematical models in the analysis of the development of the Croatian financial market. Faculty of Economics in Split, Split.
4. Baltagi, B.H. (2005). Econometric analysis of panel data. England: John Wiley & Sons Ltd.
5. Becchetti, L., & Trovato, G. (2002). The Determinants of Growth for Small and Medium Sized Firms. The Role of the Availability of External Finance. Small Business Economics, 19(4), 291-306.
6. Callado, A.L.C., & Soares, K.R. (2014). Analysis of the use of performance indicators in the context of agribusiness. Custos e agronegocio on line, 10(2), 272-284.
7. Daunfeldt, S.O., Elert, N., & Johansson, D. (2014). The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator? Journal of Industry, Competition and Trade, 14(3), 337-365.
8. Delmar, F. (2006). Measuring Growth: Methodological Considerations and Empirical Results. Entrepreneurship and the Growth of Firms, 1(1), 62-84.
9. Fiala, R., & Hedija, V. (2015). The relationship between firm size and firm growth: the case of the Czech Republic. Acta universitatis agriculture et silviculturae mendeliane brunensis, 63(5), 1639-1644.
10. Field, A. (2005). Discovering statistics using SPSS. London: Sage Publications Ltd.
11. Gopinath, R. (2012). Understanding the determinants of firm growth in young REITs. Retrieved from: https://core.ac.uk/reader/48657266 (April 10, 2020)
12. Gulin, D., Grbavac, J., & Hladika, M. (2016). The quality of corporate reporting as presumption of business entities transparency. Proceedings Journal of Economy and Busines, 22, 154-180.
13. Gupta, P.D., Guha, S., & Krishnaswami, S.S. (2013). Firm growth and its determinants. Journal of Innovation and Entrepreneurship, 2(15), 1-14.
14. Harabi, N. (2003). Determinants of Firm Growth: An Empirical Analysis from Morocco. Retrieved from: https://www.academia.edu/735195/Determinants_of_frm_growth_an_empirical_analysis_from_Morocco (February 12, 2020).
15. Hasanaj, P. (2019). Analysis of Financial Statement. Humanities and Social Science Research, 2(2), 17-27.
16. Herawati, A., & Fauzia, F.I. (2018). The effect of current ratio, debt to equity ratio and return on assets on dividend payout ratio in sub-sector automotive and component listed in Indonesia Stock Exchange in period 2012-2016. International Conference of Organizational Innovation, 1076-1086.
17. Hermelo, F.D. & Vassolo, R. (2007). The determinants of firms growth: an empirical examination. Revista Abante, 10(1), 3-20.
18. International Trade Centre. (2020). Trade statistics for international business development. Retrieved from: https://www.trademap.org/Index.aspx (April 6, 2020).
19. International Coffee Organization (2020a). Historical Data on the Global Coffee Trade. Retrieved from: http://www.ico.org/new_historical.asp?section=Statistics. (April 6, 2020). 20. International Coffee Organization (2020b). Trade statistics tables. World coffee consumption. Retrieved from: http://www.ico.org/prices/new-consumption-table.pdf. (April 6, 2020).
21. Jakšić, D., Mijić, K., Zekić, S., & Poljašević, J. (2015). Comparative profitability analysis of milk production companies to milk processing companies in Serbia. Custos e Agronegocio on line, 11(3), 206-226.
22. Machek, O., & Machek, M. (2014). Factors of Business Growth: A Decomposition of Sales Growth into Multiple Factors. WSEAS Transactions on Business and Economics, 11, 380-385.
23. Milić, D., Mijić, K. & Jakšić, D. (2018). Opportunistic management behavior in reporting earnings of agricultural companies. Custos e Agronegocio on line. 14(1), 125-142.
24. Ministry of finance of Republic of Serbia. (2017). Explanation regarding the excise tax on coffee from 1 January 2018. Retrieved from: https://www.mfn.gov.rs/UserFiles/File/misljenja/2017/Objasnjenje%20akciza%20kafe.pdf. (April 8, 2020).
25. Nuševa, D. (2018). Sustainability standards at the global coffee market. The Annals of the Faculty of Economics in Subotica, University of Novi Sad, 54(39), 257-267.
26. Nuševa, D., Mijić, K., & Jakšić, D. (2017). The Performances of Coffee Processors and Coffee Market in the Republic of Serbia. Economics of Agriculture. 64(1), 307-322.
27. Poljašević, J., & Mijić, K. (2017). The importance of analytical indicators in assessing the future performance of a company, The Congress of Accountants and Auditors of Montenegro, 243-260.
28. SCORING (2019). Financial statements. Retrieved Decembar 10th 2019 from www.scoring.rs
29. Sharma, S., Dhakal, C.K., Ghimire, B., & Rijal, A. (2016). Economic Significance of Coffee (Coffee Arabica) Production in Parbat District of Nepal. International Journal of Agricultural Management and Development, 6(2),123-130.
30. Shepherd, D., & Wiklund, J. (2009). Are we comparing apples with apples or apples with oranges? Appropriateness of knowledge accumulation across growth studies. Entrepreneurship Theory and Practice, 33(1), 105-123.
31. Silva, O.M., & Leite, C.A.M. (2013). Income Content of the World Coffee Exports. AD-minister Medellin-Columbia, 22, 69-82.
32. Statista (2020). Coffee Serbia. Retrieved from: https://www.statista.com/outlook/30010000/150/coffee/serbia. (April 7, 2020).
33. Subačienė, R., Alver, L., Brūna, I., Hladika, M., Mokošová, D., & Molín, J. (2018). Evaluation of accounting regulation evolution in selected countries, Entrepreneurship and Sustainability, 6(1), 139-175.
34. Voulgaris, F., Asteriou, D., & Agiomirgianakis, G. (2003). The determinants of small firm growth in the Greek manufacturing sector. Journal of Economic Integration, 18(4), 817-835.
35. Walsh, C. (2003). Key Management Ratios. London, United Kingdom: Prentice Hall.
2. Al-Abdulkader, A.M., Al-Namzi, A.A., AlTurki, T.A., Al-Khuraish, M.M., & AlDakhil, A.I. (2018). Optimizing coffee cultivation and its impact on economic growth and export earnings of the producing countries: The case of Saudi Arabia. Saudi Journal of Biological Sciences. 25(4), 776-782.
3. Aljinović, Z., & Marasović, B. (2012). Mathematical models in the analysis of the development of the Croatian financial market. Faculty of Economics in Split, Split.
4. Baltagi, B.H. (2005). Econometric analysis of panel data. England: John Wiley & Sons Ltd.
5. Becchetti, L., & Trovato, G. (2002). The Determinants of Growth for Small and Medium Sized Firms. The Role of the Availability of External Finance. Small Business Economics, 19(4), 291-306.
6. Callado, A.L.C., & Soares, K.R. (2014). Analysis of the use of performance indicators in the context of agribusiness. Custos e agronegocio on line, 10(2), 272-284.
7. Daunfeldt, S.O., Elert, N., & Johansson, D. (2014). The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator? Journal of Industry, Competition and Trade, 14(3), 337-365.
8. Delmar, F. (2006). Measuring Growth: Methodological Considerations and Empirical Results. Entrepreneurship and the Growth of Firms, 1(1), 62-84.
9. Fiala, R., & Hedija, V. (2015). The relationship between firm size and firm growth: the case of the Czech Republic. Acta universitatis agriculture et silviculturae mendeliane brunensis, 63(5), 1639-1644.
10. Field, A. (2005). Discovering statistics using SPSS. London: Sage Publications Ltd.
11. Gopinath, R. (2012). Understanding the determinants of firm growth in young REITs. Retrieved from: https://core.ac.uk/reader/48657266 (April 10, 2020)
12. Gulin, D., Grbavac, J., & Hladika, M. (2016). The quality of corporate reporting as presumption of business entities transparency. Proceedings Journal of Economy and Busines, 22, 154-180.
13. Gupta, P.D., Guha, S., & Krishnaswami, S.S. (2013). Firm growth and its determinants. Journal of Innovation and Entrepreneurship, 2(15), 1-14.
14. Harabi, N. (2003). Determinants of Firm Growth: An Empirical Analysis from Morocco. Retrieved from: https://www.academia.edu/735195/Determinants_of_frm_growth_an_empirical_analysis_from_Morocco (February 12, 2020).
15. Hasanaj, P. (2019). Analysis of Financial Statement. Humanities and Social Science Research, 2(2), 17-27.
16. Herawati, A., & Fauzia, F.I. (2018). The effect of current ratio, debt to equity ratio and return on assets on dividend payout ratio in sub-sector automotive and component listed in Indonesia Stock Exchange in period 2012-2016. International Conference of Organizational Innovation, 1076-1086.
17. Hermelo, F.D. & Vassolo, R. (2007). The determinants of firms growth: an empirical examination. Revista Abante, 10(1), 3-20.
18. International Trade Centre. (2020). Trade statistics for international business development. Retrieved from: https://www.trademap.org/Index.aspx (April 6, 2020).
19. International Coffee Organization (2020a). Historical Data on the Global Coffee Trade. Retrieved from: http://www.ico.org/new_historical.asp?section=Statistics. (April 6, 2020). 20. International Coffee Organization (2020b). Trade statistics tables. World coffee consumption. Retrieved from: http://www.ico.org/prices/new-consumption-table.pdf. (April 6, 2020).
21. Jakšić, D., Mijić, K., Zekić, S., & Poljašević, J. (2015). Comparative profitability analysis of milk production companies to milk processing companies in Serbia. Custos e Agronegocio on line, 11(3), 206-226.
22. Machek, O., & Machek, M. (2014). Factors of Business Growth: A Decomposition of Sales Growth into Multiple Factors. WSEAS Transactions on Business and Economics, 11, 380-385.
23. Milić, D., Mijić, K. & Jakšić, D. (2018). Opportunistic management behavior in reporting earnings of agricultural companies. Custos e Agronegocio on line. 14(1), 125-142.
24. Ministry of finance of Republic of Serbia. (2017). Explanation regarding the excise tax on coffee from 1 January 2018. Retrieved from: https://www.mfn.gov.rs/UserFiles/File/misljenja/2017/Objasnjenje%20akciza%20kafe.pdf. (April 8, 2020).
25. Nuševa, D. (2018). Sustainability standards at the global coffee market. The Annals of the Faculty of Economics in Subotica, University of Novi Sad, 54(39), 257-267.
26. Nuševa, D., Mijić, K., & Jakšić, D. (2017). The Performances of Coffee Processors and Coffee Market in the Republic of Serbia. Economics of Agriculture. 64(1), 307-322.
27. Poljašević, J., & Mijić, K. (2017). The importance of analytical indicators in assessing the future performance of a company, The Congress of Accountants and Auditors of Montenegro, 243-260.
28. SCORING (2019). Financial statements. Retrieved Decembar 10th 2019 from www.scoring.rs
29. Sharma, S., Dhakal, C.K., Ghimire, B., & Rijal, A. (2016). Economic Significance of Coffee (Coffee Arabica) Production in Parbat District of Nepal. International Journal of Agricultural Management and Development, 6(2),123-130.
30. Shepherd, D., & Wiklund, J. (2009). Are we comparing apples with apples or apples with oranges? Appropriateness of knowledge accumulation across growth studies. Entrepreneurship Theory and Practice, 33(1), 105-123.
31. Silva, O.M., & Leite, C.A.M. (2013). Income Content of the World Coffee Exports. AD-minister Medellin-Columbia, 22, 69-82.
32. Statista (2020). Coffee Serbia. Retrieved from: https://www.statista.com/outlook/30010000/150/coffee/serbia. (April 7, 2020).
33. Subačienė, R., Alver, L., Brūna, I., Hladika, M., Mokošová, D., & Molín, J. (2018). Evaluation of accounting regulation evolution in selected countries, Entrepreneurship and Sustainability, 6(1), 139-175.
34. Voulgaris, F., Asteriou, D., & Agiomirgianakis, G. (2003). The determinants of small firm growth in the Greek manufacturing sector. Journal of Economic Integration, 18(4), 817-835.
35. Walsh, C. (2003). Key Management Ratios. London, United Kingdom: Prentice Hall.
Downloads
Published
2021-06-24
How to Cite
Nuševa, D., Dakić, S., Jakšić, D., Mijic, K., & Saković, D. (2021). MODELLING OF GROWTH FACTORS OF COFFEE PROCESSING COMPANIES. Ekonomika Poljoprivrede, 68(2), 435–448. https://doi.org/10.5937/ekoPolj2102435N
Issue
Section
Review articles
