Sectoral and Firm-Level Determinants of Profitability: A Multilevel Approach

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F18%3A43914767" target="_blank" >RIV/62156489:43310/18:43914767 - isvavai.cz</a>
Alternative codes found
RIV/61384399:31130/18:00053205
Result on the web
<a href="https://doi.org/10.2478/ijek-2018-0012" target="_blank" >https://doi.org/10.2478/ijek-2018-0012</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.2478/IJEK-2018-0012" target="_blank" >10.2478/IJEK-2018-0012</a>

Result language
angličtina
Original language name
Sectoral and Firm-Level Determinants of Profitability: A Multilevel Approach
Original language description
The paper aimed to contribute to the literature on the determinants of firm profitability, from the perspective of the Czech economy. We followed a multilevel/hierarchical approach towards the analysis of the sectoral and firm-level determinants of the profitability of companies operating in the Czech food processing industry during years 2005 - 2012 (622 Firms in 10 Sectors). We assessed an impact of industry (i.e. market concentration, sector growth rate and growth rate of imports) and firm-level characteristics (i.e. market share, firm age, firm size, number of employees, debt/equity ratio and short-term risk) on the return on assets (ROA). Surprisingly, there were no substantial differences between the separate models for industry and firm-level determinants and a combined one. We found a positive impact of market concentration and market share and a negative effect of age and risk-taking behaviour on a firm profitability. Based on these findings, managers in the Czech food and drink industry should pay more attention to the debt policy.
Czech name
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Czech description
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Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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