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The Analysis of Company Growth Determinants Based on Financial Statements of the European Companies

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  • Bojana Vuković

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Kristina Peštović

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Vera Mirović

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Dejan Jakšić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Sunčica Milutinović

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

Abstract

The primary aim of this paper is to determine the indicators that have an influence on the company growth in the field of agriculture, forestry, and fisheries during the six-year period (2014–2019). This sector is very important for sustainable development, bearing in mind the need to preserve natural resources, i.e., land, water, plant, and animal resources. Sustainable development of this sector is of satisfactory technical-technological development, economically sustainable, and socially acceptable. The sample consists of 1333 observations of active companies on the European market. Multiple regression analysis was used in order to thoroughly analyze the variables of growth. The obtained results showed that company size has a negative impact on growth, while return on assets and leverage have a positive impact on growth. The impact of these variables was statistically significant. Along with the influence of observed determinants based on data from financial statements, the future growth and development of companies in this sector will certainly depend on the volume of investments, pricing policy, credit and natural conditions, agricultural policy measures, and adequate institutional support through the provision of financial support and encouragement of exports of products. Institutional incentives for more intensive integration of the agriculture, forestry, and fisheries sector are aimed at achieving the concept of integrated sustainable development.

Suggested Citation

  • Bojana Vuković & Kristina Peštović & Vera Mirović & Dejan Jakšić & Sunčica Milutinović, 2022. "The Analysis of Company Growth Determinants Based on Financial Statements of the European Companies," Sustainability, MDPI, vol. 14(2), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:770-:d:722110
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    References listed on IDEAS

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    1. Miroslav Mateev & Yanko Anastasov, 2010. "Determinants of small and medium sized fast growing enterprises in central and eastern Europe: a panel data analysis," Financial Theory and Practice, Institute of Public Finance, vol. 34(3), pages 269-295.
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    4. G. Agiomirgianakis & D. Asteriou, 2003. "The Determinants of Small Firm Growth in the Greek Manufacturing Sector," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 817-836.
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    2. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    3. Nguyen Thi Mo & Cao Minh Tien & Tran Thi Lan Anh & Tran Van Hai, 2024. "Human Resource Management Factors in Financial Analysis of Securities Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 154-162, July.
    4. Rahimi Mansoor & Shaista & Subhan Ullah & Rovaid Ullah, 2024. "The Impact of ESG on Financial Performance of Top 100 Companies of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(3), pages 14-20.
    5. Bojana Vuković & Teodora Tica & Dejan Jakšić, 2022. "Sustainable Growth Rate Analysis in Eastern European Companies," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    6. Bansal, Sanchita & Kumar, Satish & Ali, Searat & Singh, Shifali & Nangia, Priya & Bamel, Umesh, 2025. "Harnessing digital finance for sustainability: An integrative review and research agenda," Research in International Business and Finance, Elsevier, vol. 74(C).

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