Is There Relationship between Firm Size and Profitability?

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Is There Relationship between Firm Size and Profitability?

Author Info

Darko Tipuric (Graduate School of Economics and Business, University of Zagreb, Croatia)

Abstract

This paper presents author’s research findings into the relationship between firm size and profitability, without an industry effect analysis. The findings have indicated the following: (1) marginally, profit is related to firm size i.e. the larger the firm the larger its profits (the reverse is also true); (2) small Croatian firms have profits per employee that are multiples of those earned by medium-sized and large firms, (3) there is a correlation between the increase in firm size (measured by total revenues) and increase in profits, and (4) there is a weak correlation between increase in size (measured by the number of employees) and decrease in profits

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Publisher Info
Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

Volume (Year): 5 (2002)
Issue (Month): Special Conference Issue (December)
Pages: 139-154
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Handle: RePEc:zag:zirebs:v:5:y:2002:i:sci:p:139-154

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Related research
Keywords: firm size; revenue; profits; ANOVA;

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing

Cited by:
(explanations, 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.)

Darko Tipurić & Mirjana Pejić Bach, 2009. "Changes in Industrial Concentration in the Croatian Economy (1995-2006)," EFZG Working Papers Series 0903, Faculty of Economics and Business, University of Zagreb. [Downloadable!]

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This page was last updated on 2009-12-11.

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