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Profitability of Business Entities Settled in Selected Countries of the Eurozone Periphery

Author

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  • Jan Vavřina

    () (Mendel University in Brno)

  • Lubor Lacina

    () (Mendel University in Brno)

Abstract

Greece, Ireland, Portugal and Spain can be defined as Eurozone periphery countries due to their specifics being rooted in policy systems and lagging behind in economic performance when compared with EU-15 countries. The objective of this paper is to provide an initial exploration of the similar and dissimilar business aspects´ development within observed Greek and Irish entities´ economic performance in different industries, using two-dimensional visualisation in the context of the recent world financial and economic crisis. This visualisation approach using classical correspondence analysis helps to reveal broader associations, which could influence the economic status of observed business units. Greek and Irish businesses which have been considered to be specifically, strongly and negatively influenced by the world economic downturn were observed. A sample of companies’ corporate financial statements´ data were employed. The sample of entities was set up according to the criterion of profitability of the whole involved capital development, regardless of its nature during the time period of the years 2008 – 2010, i. e. according to either the continual increase or decrease of the aforementioned indicator. Consequently, there were explored other attributes of assorted businesses, namely economic size and industry classification as the components for cross-tabular data sets. Authors revealed associations among different industries and size categories of Greek and Irish businesses using classical correspondence analysis.

Suggested Citation

  • Jan Vavřina & Lubor Lacina, 2014. "Profitability of Business Entities Settled in Selected Countries of the Eurozone Periphery," Acta Universitatis Bohemiae Meridionales, University of South Bohemia in Ceske Budejovice, vol. 17(2), pages 75-91.
  • Handle: RePEc:boh:actaub:v:17:y:2014:i:2:p:75-91
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    References listed on IDEAS

    as
    1. Martina Lawless & Fergal McCann, 2013. "Determinants of Default: Evidence from a Sector-level Panel of Irish SME Loans," The Economic and Social Review, Economic and Social Studies, pages 473-488.
    2. Lawless, Martina & McCann, Fergal, 2012. "Determinants of default: Evidence from a sector-level panel of Irish SME loans," Research Technical Papers 03/RT/12, Central Bank of Ireland.
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    More about this item

    Keywords

    Eurozone; Economic Crisis; Correspondence Analysis; Business Entities; Financial analysis;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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