Literature overview on the determinant factors of firm profitability in Greece
| Author(s) | Theme of study | Period | Main results |
|---|---|---|---|
| Agiomirgianakis et al. (2006) | Manufacturing sector (3,094 corporate private firms) | 1995–1999 | Firm size, age, exports, sales growth, reliance on debt on fixed assets and investment growth, as well as efficient management of assets influence profitability |
| Agiomirgianakis et al. (2013) | Tourism sector (134 hotels) | 2006–2010 | Age of firm, firm's size and low-cost access to bank financing have positive effect in profitability; leverage and economic crisis have negative effect |
| Argyrou et al. (2016) | Manufacturing sector (25,181 firms) | 2006–2013 | Age is significantly correlated to profitability before the crisis, and negatively after. Employment is related positively with profitability with the exception for the years 2011 and 2012. Exports are related positively in the pre-crisis period and negatively in the crisis period. A controversial impact has been found also for sales |
| Asimakopoulos et al. (2009) | Non-financial firms (119 firms) | 1995–2003 | Firm profitability was positively affected by size, sales growth and investment, and negatively by leverage and current assets. Additionally, the EMU participation and the adoption of the euro were negatively related to firm profitability |
| Caloghirou et al. (2004) | Manufacturing, SMEs and large firms, firms with turnover exceeding 3 million euros in 1999, questionnaire analysis (280 firms) | 1999 | Industrial growth (by sales) and financial assets have a significant positive relation, while technological assets a negative relation to the profitability of large firms |
| Dimitrić et al. (2019) | Hotel companies (1,314 firms for Greece) | 2007–2015 | Lagged profitability, cash flow to operating revenue, net asset turnover and company age have positive significant effect in profitability |
| Dimitropoulos (2020) | Non-financial corporations (3,332 firm-year observations) | 2003–2010, 2011–2016 | Size, change in sale revenues, net working capital and flows to total assets have positive effect in profitability, while liabilities a negative one. R&D investments have a negative impact on the profitability of sample firms before the crisis and positive during the crisis (2011–2016) |
| Georgopoulos and Koumanakos (2007) | Affiliates of foreign TNCs (82 affiliates) | 1999–2002 | Weak empirical support of intra-firm trade impact on profitability |
| Kapopoulos and Lazaretou (2007) | Random sample of firms in all sectors (175 firms) | 2000 | Market concentration is related positively with profitability, while debt-to-assets ratio negatively |
| Lemonakis et al. (2016) | Agri-food sector (251 agri-food firms) | 2004–2011 | Positive effect of subsidies on competitiveness (which includes a strong component of profitability) is interesting only for the fruit-vegetable-cereal farms. |
| Lemonakis et al. (2013) | Agri-food sector (290 agricultural firms) | 2004–2011 | Exports, fixed assets and labour efficiency, good liquidity condition and careful use of foreign capital, along with economic growth, contribute to the profitability of agri-businesses |
| Liargovas and Skandalis (2008) | Manufacturing (102 industrial firms) | 1997–2004 | Leverage, export activity, location, size and the index for management competence significantly affect firm competitiveness (profitability) |
| Magoutas et al. (2011) | Manufacturing (287 firms) | 2004–2006 | Human capital, firm size, investments, assets to turnover ratio and dummy for location in the two metropolitan regions are related positively with profitability, while leverage negatively |
| Magoutas et al. (2016) | Tourism sector (4,433 firms) | 2005–2011 | Increased market share, decreasing leverage, a more efficient managerial performance, capital investment based on the principles of capital budgeting and innovation are crucial factors for financial performance during a period of economic crisis. Age is positively related with profitability only in the pre-crisis period and investments only in the crisis period. |
| Notta and Vlachvei (2014) | Food manufacturing firms (128 firms) | 2006–2008, 2009–2011 | Market share, liquidity and leverage have significant effect on profits for the crisis period, and only market share is related significantly with profits in the pre-crisis period |
| Papadogonas (2007) | Manufacturing (3,035 firms) | 1995–1999 | Size, managerial efficiency, debt structure, investment in fixed assets and sales growth affect significantly firm profitability |
| Salavou (2002) | SMEs in food industry, questionnaire analysis (745 firms) | 1995–1997 | Market orientation, in terms of customer responsiveness and market-driven pricing policy, and product innovation interact in affecting business profitability |
| Spanos et al. (2004) | Manufacturing firms with size of at least 20 employees (1,921 firms) | 1995–1996 | Firm-specific factors explain more than twice as much profit variability as industry factors |
| Tzelepis and Skuras (2004) | Food and drinks manufacturing firms (1,005 firms) | 1982–1996 | Market growth is related positively with profitability |
| Ventoura et al. (2007) | Chemical and textile industry (163 firms) | 2001 | Positive influence of productivity on profitability |
| Author(s) | Theme of study | Period | Main results |
|---|---|---|---|
| Manufacturing sector (3,094 corporate private firms) | 1995–1999 | Firm size, age, exports, sales growth, reliance on debt on fixed assets and investment growth, as well as efficient management of assets influence profitability | |
| Tourism sector (134 hotels) | 2006–2010 | Age of firm, firm's size and low-cost access to bank financing have positive effect in profitability; leverage and economic crisis have negative effect | |
| Manufacturing sector (25,181 firms) | 2006–2013 | Age is significantly correlated to profitability before the crisis, and negatively after. Employment is related positively with profitability with the exception for the years 2011 and 2012. Exports are related positively in the pre-crisis period and negatively in the crisis period. A controversial impact has been found also for sales | |
| Non-financial firms (119 firms) | 1995–2003 | Firm profitability was positively affected by size, sales growth and investment, and negatively by leverage and current assets. Additionally, the EMU participation and the adoption of the euro were negatively related to firm profitability | |
| Manufacturing, SMEs and large firms, firms with turnover exceeding 3 million euros in 1999, questionnaire analysis (280 firms) | 1999 | Industrial growth (by sales) and financial assets have a significant positive relation, while technological assets a negative relation to the profitability of large firms | |
| Hotel companies (1,314 firms for Greece) | 2007–2015 | Lagged profitability, cash flow to operating revenue, net asset turnover and company age have positive significant effect in profitability | |
| Non-financial corporations (3,332 firm-year observations) | 2003–2010, 2011–2016 | Size, change in sale revenues, net working capital and flows to total assets have positive effect in profitability, while liabilities a negative one. R&D investments have a negative impact on the profitability of sample firms before the crisis and positive during the crisis (2011–2016) | |
| Affiliates of foreign TNCs (82 affiliates) | 1999–2002 | Weak empirical support of intra-firm trade impact on profitability | |
| Random sample of firms in all sectors (175 firms) | 2000 | Market concentration is related positively with profitability, while debt-to-assets ratio negatively | |
| Agri-food sector (251 agri-food firms) | 2004–2011 | Positive effect of subsidies on competitiveness (which includes a strong component of profitability) is interesting only for the fruit-vegetable-cereal farms. | |
| Agri-food sector (290 agricultural firms) | 2004–2011 | Exports, fixed assets and labour efficiency, good liquidity condition and careful use of foreign capital, along with economic growth, contribute to the profitability of agri-businesses | |
| Manufacturing (102 industrial firms) | 1997–2004 | Leverage, export activity, location, size and the index for management competence significantly affect firm competitiveness (profitability) | |
| Manufacturing (287 firms) | 2004–2006 | Human capital, firm size, investments, assets to turnover ratio and dummy for location in the two metropolitan regions are related positively with profitability, while leverage negatively | |
| Tourism sector (4,433 firms) | 2005–2011 | Increased market share, decreasing leverage, a more efficient managerial performance, capital investment based on the principles of capital budgeting and innovation are crucial factors for financial performance during a period of economic crisis. Age is positively related with profitability only in the pre-crisis period and investments only in the crisis period. | |
| Food manufacturing firms (128 firms) | 2006–2008, 2009–2011 | Market share, liquidity and leverage have significant effect on profits for the crisis period, and only market share is related significantly with profits in the pre-crisis period | |
| Manufacturing (3,035 firms) | 1995–1999 | Size, managerial efficiency, debt structure, investment in fixed assets and sales growth affect significantly firm profitability | |
| SMEs in food industry, questionnaire analysis (745 firms) | 1995–1997 | Market orientation, in terms of customer responsiveness and market-driven pricing policy, and product innovation interact in affecting business profitability | |
| Manufacturing firms with size of at least 20 employees (1,921 firms) | 1995–1996 | Firm-specific factors explain more than twice as much profit variability as industry factors | |
| Food and drinks manufacturing firms (1,005 firms) | 1982–1996 | Market growth is related positively with profitability | |
| Chemical and textile industry (163 firms) | 2001 | Positive influence of productivity on profitability |
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