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Is There Relationship between Firm Size and Profitability?

Author

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  • 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

Suggested Citation

  • Darko Tipuric, 2002. "Is There Relationship between Firm Size and Profitability?," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 5(Special C), pages 139-154, December.
    • Handle: RePEc:zag:zirebs:v:5:y:2002:i:sci:p:139-154
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    firm size; revenue; profits; ANOVA;
    All these keywords.

    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; Personnel Economics - - Marketing and Advertising - - - Marketing

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