IDEAS home Printed from https://ideas.repec.org/a/vrs/poicbe/v17y2023i1p537-548n13.html
   My bibliography  Save this article

Impact of the Influence Factors for the Operating Profit of Companies from Romanian Agri-Business Sector

Author

Listed:
  • Moise Dumitru-Florin

    (1 Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The objective of the study is to assess the impact of the influence factors for operating profit obtained by Romanian agriculture companies that have accessed bank loans in two consecutive years with major differences in results. The analysis was done for the year 2019 which was a very good one in term of production at national level and 2020 when the agriculture activity was affected by severe drought. The influence factors taken in consideration are turnover, equity and interest expenses. The purpose is to determine where a company is earning its profits or where is losing money and to predict the movement of the financial results considering that internal or external factors can change substantially. The research was carried out on a sample of 2220 companies from the Romanian agri-business sector. The size of the sample differentiates the study within the specialized literature. The relationship between variables was determined using a descriptive quantitative method and the multiple regression test using the SPSS software. The specialized literature is dominated by studies in which indicators are used in the form of rates, but the present study only uses indicators in absolute values. The operational income depends on the operational revenues and costs, but it is more important to observe the impact factors which can reflect the behavior of the shareholders as the level of equity or the interest expenses which can be influenced by external factors like inflation. According with the results obtained, the interest expenses have a significant influence on the operating profit and the negative effect can be amplified by decreases in turnover or equity. The effect of this relationship should be anticipated especially in the recession periods of the economy when the decrease in turnover can appear at the same time with the increase in interest cost.

Suggested Citation

  • Moise Dumitru-Florin, 2023. "Impact of the Influence Factors for the Operating Profit of Companies from Romanian Agri-Business Sector," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 537-548, July.
    • Handle: RePEc:vrs:poicbe:v:17:y:2023:i:1:p:537-548:n:13
    DOI: 10.2478/picbe-2023-0051
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/picbe-2023-0051
    Download Restriction: no
    File URL: https://libkey.io/10.2478/picbe-2023-0051?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bunea, Ovidiu-Iulian & Corbos, Razvan-Andrei & Popescu, Ruxandra-Irina, 2019. "Influence of some financial indicators on return on equity ratio in the Romanian energy sector - A competitive approach using a DuPont-based analysis," Energy, Elsevier, vol. 189(C).
    2. Ayub Mehar, 2005. "The financial repercussion of cost, revenue and profit: an extension in the BEP and CVP analysis," Applied Financial Economics, Taylor & Francis Journals, vol. 15(4), pages 259-271.
    3. Mohammad Ali AL Hayek, 2018. "The Relationship Between Sales Revenue and Net Profit with Net Cash Flows from Operating Activities in Jordanian Industrial Joint Stock Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 149-162, July.
    4. Feng, Cheng-Min & Wang, Rong-Tsu, 2000. "Performance evaluation for airlines including the consideration of financial ratios," Journal of Air Transport Management, Elsevier, vol. 6(3), pages 133-142.
    5. Nina Ponikvar & Maks Tajnikar & Ksenja Pušnik, 2009. "Performance ratios for managerial decision‐making in a growing firm," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(2), pages 109-120, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Plumley & Rob Wilson & Robbie Millar & Simon Shibli, 2019. "Howzat? The Financial Health of English Cricket: Not Out, Yet," IJFS, MDPI, vol. 7(1), pages 1-17, February.
    2. Mahmut BAKIR & Şahap AKAN & Kasım KIRACI & Darjan KARABASEVIC & Dragisa STANUJKIC & Gabrijela POPOVIC, 2020. "Multiple-Criteria Approach of the Operational Performance Evaluation in the Airline Industry: Evidence from the Emerging Markets," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 149-172, July.
    3. Francis, Graham & Humphreys, Ian & Fry, Jackie, 2005. "The nature and prevalence of the use of performance measurement techniques by airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 207-217.
    4. Hyungjin Shin & Gyumin Lee & Jaenam Lee & Sehoon Kim & Inhong Song, 2023. "Assessment of Agricultural Drought Vulnerability with Focus on Upland Fields and Identification of Primary Management Areas," Sustainability, MDPI, vol. 15(3), pages 1-16, February.
    5. Chen Jo-Hui & Diaz John Francis T., 2021. "Application of grey relational analysis and artificial neural networks on currency exchange-traded notes (ETNs)," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 25(2), pages 1-17, April.
    6. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    7. Namık Kemal Erdoğan & Serpil Altınırmak & Çağlar Karamaşa, 2016. "Comparison of multi criteria decision making (MCDM) methods with respect to performance of food firms listed in BIST," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 5(1), pages 67-90.
    8. Chiuling Lu & Ann Yang & Jui-Feng Huang, 2015. "Bankruptcy predictions for U.S. air carrier operations: a study of financial data," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(3), pages 574-589, July.
    9. Roman Vavrek, 2019. "Evaluation of the Impact of Selected Weighting Methods on the Results of the TOPSIS Technique," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1821-1843, November.
    10. Berna Bulgurcu, 2013. "Financial Performance Ranking of the Automotive Industry Firms in Turkey: Evidence from an Entropy-Weighted Technique," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 844-851.
    11. Wang, Rong-Tsu & Ho, Chien-Ta & Feng, Cheng-Min & Yang, Yung-Kai, 2004. "A comparative analysis of the operational performance of Taiwan's major airports," Journal of Air Transport Management, Elsevier, vol. 10(5), pages 353-360.
    12. Deyanira Bernal Dom¨ªnguez & Mar¨ªa Luisa Saavedra Garc¨ªa & Lydia Mar¨ªa L¨®pez Barraza, 2014. "Financial Analysis Management of Companies in a Region of Mexico: the Need of a Financial Ratios Annual Directory," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 64-78, August.
    13. Mahmut Baydaş & Dragan Pamučar, 2022. "Determining Objective Characteristics of MCDM Methods under Uncertainty: An Exploration Study with Financial Data," Mathematics, MDPI, vol. 10(7), pages 1-25, March.
    14. Andreas-Daniel Cocis & Larissa Batrancea & Horia Tulai, 2021. "The Link between Corporate Reputation and Financial Performance and Equilibrium within the Airline Industry," Mathematics, MDPI, vol. 9(17), pages 1-12, September.
    15. Ioannis E. Tsolas, 2020. "Financial Performance Assessment of Construction Firms by Means of RAM-Based Composite Indicators," Mathematics, MDPI, vol. 8(8), pages 1-16, August.
    16. Pyoungsoo Lee & Yong Won Seo, 2017. "Directions for Social Enterprise from an Efficiency Perspective," Sustainability, MDPI, vol. 9(10), pages 1-16, October.
    17. Dabwan, Yousef N. & Pei, Gang & Kwan, Trevor Hocksun & Zhao, Bin, 2021. "An innovative hybrid solar preheating intercooled gas turbine using parabolic trough collectors," Renewable Energy, Elsevier, vol. 179(C), pages 1009-1026.
    18. Simonelli, Felice & Caroli, Matteo Giuliano, 2013. "Harmonization of market entry regulation for the operation of air services in the European Union: A comparative survey of the implementation of Regulation (EC) no. 1008/2008 by Member States' authorit," Journal of Air Transport Management, Elsevier, vol. 27(C), pages 39-45.
    19. María Carmen Carnero, 2020. "Fuzzy TOPSIS Model for Assessment of Environmental Sustainability: A Case Study with Patient Judgements," Mathematics, MDPI, vol. 8(11), pages 1-43, November.
    20. Hasan Dinçer & Ozlem Olgu Akdeniz & Umit Hacioglu, 2018. "Competitive strategy selection in the European banking sector using a hybrid decision-making approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 213-242.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:poicbe:v:17:y:2023:i:1:p:537-548:n:13. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.