Analysing the effect of macroeconomic characteristics, on firm performance: evidence from selected countries of Eurozone

Macroeconomic performance is a crucial factor of economic growth in firm level, as the 2008 global financial crisis strongly highlighted. In this work, we attempt to associate country-specific economic indicators with firm financial performance, on selected Eurozone countries-members. Financial data from a large number of listed firms are collected and analysed for more than ten years, along with several country-specific indicators, attempting to disclose possible relation between macroeconomic conditions and the microeconomy. Firms from the European North and the Euro periphery, are both included in the analysis, two groups of countries with not only adverse economic performance (especially during the current crisis) but also with a completely different structure of the public sector and state intervention in the real economy. Findings indicate that a negative macroeconomic environment crucially impair returns in firm level and specific policy measures should be taken in order to protect private sector, especially in the more vulnerable economies.