Advanced Search
MyIDEAS: Login

The Effect Of Financial/Economic Crisis On Firm Performance In Slovenia - A Micro Level, Difference-In-Differences Approach

Contents:

Author Info

  • Primoz Dolenc
  • Andraz Grum
  • Suzana Laporsek

Abstract

The aim of the paper is to assess the effect of the financial/economic crisis on firm performance across different industry sectors in Slovenia. We employ unusually reach data set: in the analysis we include micro level accounting data on all Slovenian firms in the period from 2003 until 2010 (data for 2011 was not yet available). The analysis of the impact of financial/economic crisis on industry sectors in Slovenia is based on selected financial performance measures with the application of difference-in-differences approach. This is a quasi-experimental technique that measures the effect of a treatment at a given period in time. "Treatment" in our case is financial/economic crisis, which tend not to have a significant effect on some industries (i.e., control group) and have evident effect on other industries (i.e., treatment group). We find that the financial performance of firms was significantly poorer in treatment groups, confirming the negative effect of the financial/ economic crisis. Besides control group (industry sector A - Agriculture, forestry and fishing) for which we assumed to be less affected by the financial/economic crisis or not be affected at all, the industry sector B (Mining and quarrying) and financial indicator EBITDA margin seem not to be affected much from the financial/economic crisis. But for most industry sectors and financial indicators the effect of the crisis was evident/statistically significant. According to the results of the analysis, the financial/economic crisis had the most evident effect on return on equity and employee value added, and on industry sectors Electricity, gas, steam and air conditioning supply (D), Water supply, sewerage, waste management and remediation activities (E), and - of course - Construction (F).

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://repec.mnje.com/mje/2012/v08-n02/mje_2012_v08-n02-a21.pdf
Download Restriction: no

File URL: http://repec.mnje.com/mje/2012/v08-n02/mje_2012_v08-n02-a21.html
Download Restriction: no

Bibliographic Info

Article provided by Economic Laboratory for Transition Research (ELIT) in its journal Montenegrin Journal of Economics.

Volume (Year): 8 (2012)
Issue (Month): 2 ()
Pages: 207-222

as in new window
Handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:207-222

Contact details of provider:
Web page: http://www.mnje.com

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Paul J. Gertler & Sebastian Martinez & Patrick Premand & Laura B. Rawlings & Christel M. J. Vermeersch, 2011. "Impact Evaluation in Practice," World Bank Publications, The World Bank, number 2550, October.
  2. Bricongne, Jean-Charles & Fontagné, Lionel & Gaulier, Guillaume & Taglioni, Daria & Vicard, Vincent, 2010. "Firms and the global crisis: French exports in the turmoil," Working Paper Series 1245, European Central Bank.
  3. Pradhan, Jaya Prakash, 2009. "Firm Performance during Global Economic Slowdown: A View from India," MPRA Paper 17145, University Library of Munich, Germany.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:207-222. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.