DuPont analysis among European dentistry companies to measure the impact of the COVID-19 pandemic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F24%3AA0000488" target="_blank" >RIV/47813059:19520/24:A0000488 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.15240/tul/001/2024-1-010" target="_blank" >https://doi.org/10.15240/tul/001/2024-1-010</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2024-1-010" target="_blank" >10.15240/tul/001/2024-1-010</a>

Jazyk výsledku

angličtina

Název v původním jazyce

DuPont analysis among European dentistry companies to measure the impact of the COVID-19 pandemic

Popis výsledku v původním jazyce

Although health economics belongs to the highly respected economic disciplines within the research literature, there is a considerable gap related to the investigation of dentistry in particular, even after the global pandemic of Covid-19 disease. Fundamentally, the DuPont framework is a well-known complex analysis to evaluate companies from the point of view of financial performance. The investigation of the return on equity as a relation between the return on assets and the equity multiplier simply called the leverage effect, is present in this paper. Therefore, this study aims to estimate the effect of leverage and its changes due to the COVID-19 pandemic among dentistry companies in selected European countries with different healthcare insurance systems. This comparative investigation focused on the generalized method of moments with dynamic panel data from Orbis, the Bureau van Dijk financial database for 1,128 dentistry companies in nine European countries. Methodologically, it has followed the techniques suggested by Kripfganz (2019), including post-estimation techniques to evaluate over- and underestimation of the models. It has been differentiating between companies with a high or low ownership concentration structure. The results have shown differences in the leverage effect during the pandemic, assuming that companies with a major owner increased their equity, while the debt leverage increased among those companies with dispersed ownership and vice versa. If economic theory states that debt financing is more effective for a company than using internal sources, it is apparently different in the case of dentistry during the pandemic. However, dispersed ownership is more often related to dentistry according to mergers in this particular business industry.

Název v anglickém jazyce

DuPont analysis among European dentistry companies to measure the impact of the COVID-19 pandemic

Popis výsledku anglicky

Although health economics belongs to the highly respected economic disciplines within the research literature, there is a considerable gap related to the investigation of dentistry in particular, even after the global pandemic of Covid-19 disease. Fundamentally, the DuPont framework is a well-known complex analysis to evaluate companies from the point of view of financial performance. The investigation of the return on equity as a relation between the return on assets and the equity multiplier simply called the leverage effect, is present in this paper. Therefore, this study aims to estimate the effect of leverage and its changes due to the COVID-19 pandemic among dentistry companies in selected European countries with different healthcare insurance systems. This comparative investigation focused on the generalized method of moments with dynamic panel data from Orbis, the Bureau van Dijk financial database for 1,128 dentistry companies in nine European countries. Methodologically, it has followed the techniques suggested by Kripfganz (2019), including post-estimation techniques to evaluate over- and underestimation of the models. It has been differentiating between companies with a high or low ownership concentration structure. The results have shown differences in the leverage effect during the pandemic, assuming that companies with a major owner increased their equity, while the debt leverage increased among those companies with dispersed ownership and vice versa. If economic theory states that debt financing is more effective for a company than using internal sources, it is apparently different in the case of dentistry during the pandemic. However, dispersed ownership is more often related to dentistry according to mergers in this particular business industry.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

E & M EKONOMIE A MANAGEMENT

ISSN

1212-3609

e-ISSN

2336-5064

Svazek periodika

27

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

14

Strana od-do

161-174

Kód UT WoS článku

001207109300010

EID výsledku v databázi Scopus

2-s2.0-85187189825