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Profitability determinants of fitness SMEs: Empirical evidence from Portugal using panel data

Author

Listed:
  • Pedro Guedes de Carvalho

    (Sport Sciences Department, Beira Interior University and CIDESD Research Center, UTAD University, Portugal)

  • Zélia Serrasqueiro

    (Management and Economics Department, Beira Interior University and CEFAGE Research Center, Évora University, Portugal)

  • Paulo Maças Nunes

    () (Management and Economics Department, Beira Interior University and CEFAGE Research Center, Évora University, Portugal)

Abstract

Based on a sample of 182 small and medium-sized Portuguese fitness firms, using panel data models, this paper studies the determinants of profitability in Portuguese fitness SMEs. The empirical evidence indicates that: i) size, age, liquidity, long-term debt and government subsidies are determinants stimulating profitability in Portuguese fitness SMEs; ii) risk is a restrictive determinant of profitability in Portuguese fitness SMEs; and iii) growth opportunities, in the form of intangible assets, are neither a stimulating nor restrictive determinant of profitability in Portuguese fitness SMEs. The empirical evidence allows us to make important suggestions for political decision-makers and the owners/managers of small and medium-sized Portuguese fitness firms.

Suggested Citation

  • Pedro Guedes de Carvalho & Zélia Serrasqueiro & Paulo Maças Nunes, 2013. "Profitability determinants of fitness SMEs: Empirical evidence from Portugal using panel data," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 417-430, June.
  • Handle: RePEc:aes:amfeco:v:15:y:2013:i:34:p:417-430
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    References listed on IDEAS

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    More about this item

    Keywords

    financial constraints; human kinetics; performance; Portugal; service SMEs;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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