Investigating the differences in entrepreneurial success through the firm-specific factors: Microeconomic evidence from the Czech food industry

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F19%3A43915018" target="_blank" >RIV/62156489:43310/19:43915018 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/61384399:31130/19:00052775

Výsledek na webu

<a href="https://doi.org/10.1108/JEEE-11-2017-0093" target="_blank" >https://doi.org/10.1108/JEEE-11-2017-0093</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1108/JEEE-11-2017-0093" target="_blank" >10.1108/JEEE-11-2017-0093</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Investigating the differences in entrepreneurial success through the firm-specific factors: Microeconomic evidence from the Czech food industry

Popis výsledku v původním jazyce

Purpose: This paper aims to investigate the effect of firm-specific determinants on the entrepreneurial success (measured through the objective financial performance) of the Czech food processing firms over 2003-2014 and with the main particular focus on capital structure and productivity as the tough challenges of the firms in transition and emerging economies. Design/methodology/approach: Determinants of profitability are tested econometrically, as for the estimation technique, both-way fixed effects controlling for variety over the time and across enterprises were applied. The collected micro-panel data set consists of 10,509 observations and includes 1,804 firms. Estimated regression models with fixed effects are used to quantify the determinants of the financial performance, operationalized through three key performance indicators - price-cost margin, return on assets and return on equity. Findings: Estimated econometric models supported hypothesis assuming a positive relationship between the labour productivity and profitability. In line with the assumptions based on the development of the Czech food market, high leverage of firms led to the decrease of profitability, which can be explained by the high financial distress costs and worsened market position of firms in the competitive environment. Ageing of firms and firm size were associated with the increase of profitability indicators. Practical implications: The findings of the presented research are important for investors considering agribusiness as a part of their investment portfolios and for policymakers to enhance the economic efficiency of the food industry through regulations and public support, and particularly, from the firm management viewpoint, e.g. to pay attention to the debt policy due to the negative impact of high indebtedness on firm profitability, and to the productivity factors, which proved to be important drivers of entrepreneurial success. Originality/value: Although the firm-specific factors responsible for firm performance have already been studied, the food processing industry has received limited interest from the empirical analysts, and the results are not always unequivocal. This study is expected to contribute to the literature on this subject, both empirically and methodologically, as to the best of the authors&apos; knowledge, no study has been encountered yet where the factors determining the profitability of the Czech food processing industry have been the focus. With regards to the collected micro-data set and the estimation technique, the study can be considered as extensive not only from the perspective of the research in the Czech Republic but also from the international perspective.

Název v anglickém jazyce

Investigating the differences in entrepreneurial success through the firm-specific factors: Microeconomic evidence from the Czech food industry

Popis výsledku anglicky

Purpose: This paper aims to investigate the effect of firm-specific determinants on the entrepreneurial success (measured through the objective financial performance) of the Czech food processing firms over 2003-2014 and with the main particular focus on capital structure and productivity as the tough challenges of the firms in transition and emerging economies. Design/methodology/approach: Determinants of profitability are tested econometrically, as for the estimation technique, both-way fixed effects controlling for variety over the time and across enterprises were applied. The collected micro-panel data set consists of 10,509 observations and includes 1,804 firms. Estimated regression models with fixed effects are used to quantify the determinants of the financial performance, operationalized through three key performance indicators - price-cost margin, return on assets and return on equity. Findings: Estimated econometric models supported hypothesis assuming a positive relationship between the labour productivity and profitability. In line with the assumptions based on the development of the Czech food market, high leverage of firms led to the decrease of profitability, which can be explained by the high financial distress costs and worsened market position of firms in the competitive environment. Ageing of firms and firm size were associated with the increase of profitability indicators. Practical implications: The findings of the presented research are important for investors considering agribusiness as a part of their investment portfolios and for policymakers to enhance the economic efficiency of the food industry through regulations and public support, and particularly, from the firm management viewpoint, e.g. to pay attention to the debt policy due to the negative impact of high indebtedness on firm profitability, and to the productivity factors, which proved to be important drivers of entrepreneurial success. Originality/value: Although the firm-specific factors responsible for firm performance have already been studied, the food processing industry has received limited interest from the empirical analysts, and the results are not always unequivocal. This study is expected to contribute to the literature on this subject, both empirically and methodologically, as to the best of the authors&apos; knowledge, no study has been encountered yet where the factors determining the profitability of the Czech food processing industry have been the focus. With regards to the collected micro-data set and the estimation technique, the study can be considered as extensive not only from the perspective of the research in the Czech Republic but also from the international perspective.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2019

Kód důvěrnosti údajů

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

Název periodika

Journal of Entrepreneurship in Emerging Economies

ISSN

2053-4604

e-ISSN

—

Svazek periodika

11

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

23

Strana od-do

154-176

Kód UT WoS článku

000469124000001

EID výsledku v databázi Scopus

2-s2.0-85055162599