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Financial factors affecting profitability and employment growth: the case of Greek manufacturing

Author

Listed:
  • G. Agiomirgianakis
  • F. Voulgaris
  • T. Papadogonas

Abstract

The key financial determinants of firm profitability and employment growth are identified by using a panel of 3094 Greek manufacturing firms for 1995 and 1999, just before the country's accession to the European Monetary Union. The analysis includes stepwise regression models. The independent variables used are size, age, location and exports, as well as a number of financial ratios describing the asset structure, capital structure, reliance on debt, employee productivity and managerial efficiency. The results show that size, age, exports, debt structure, investment in fixed assets and profitability of assets and sales contribute significantly to firm growth. Econometric results also reveal that firm size, age, exports, sales growth, reliance on debt on fixed assets and investment growth, as well as efficient management of assets, influence profitability.

Suggested Citation

  • G. Agiomirgianakis & F. Voulgaris & T. Papadogonas, 2006. "Financial factors affecting profitability and employment growth: the case of Greek manufacturing," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 1(2/3), pages 232-242.
    • Handle: RePEc:ids:ijfsmg:v:1:y:2006:i:2/3:p:232-242
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    Citations

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    Cited by:

    1. Ilias A. Makris & Vasilis Nikolaidis & Stavros Stavroyiannis, 2016. "Economic Growth and Exporting Activity: An Empirical Analysis on Greek Industry," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 41-52.
    2. repec:mth:ijafr8:v:8:y:2018:i:3:p:278-294 is not listed on IDEAS
    3. Ibrahim Abidemi Odusanya & Olumuyiwa Ganiyu Yinusa & Bamidele M. Ilo, 2018. "Determinants of Firm Profitability in Nigeria: Evidence from Dynamic Panel Models," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(1), pages 43-58, January-M.
    4. Dongsheng Zhang & Hongwei Wang & Wenfu Wang, 2022. "The Influence of Relational Capital on the Sustainability Risk: Findings from Chinese Non-State-Owned Manufacturing Enterprises," Sustainability, MDPI, vol. 14(11), pages 1-18, June.
    5. Veronika Kajurova & Dagmar Linnertova, 2018. "The Impact of Loose Monetary Policy on the Competitiveness of Czech Firms," ACTA VSFS, University of Finance and Administration, vol. 12(1), pages 43-73.
    6. Voulgaris, Fotini & Lemonakis, Christos, 2014. "Competitiveness and profitability: The case of chemicals, pharmaceuticals and plastics," The Journal of Economic Asymmetries, Elsevier, vol. 11(C), pages 46-57.
    7. F. Voulgaris & G. Agiomirgianakis & T. Papadogonas, 2015. "Job creation and job destruction in economic crisis at firm level: the case of Greek manufacturing sectors," International Economics and Economic Policy, Springer, vol. 12(1), pages 21-39, March.
    8. Monika Wieczorek-Kosmala & Joanna Błach & Iwona Gorzeń-Mitka, 2021. "Does Capital Structure Drive Profitability in the Energy Sector?," Energies, MDPI, vol. 14(16), pages 1-15, August.
    9. Kuncová, M. & Hedija, V. & Fiala, R., 2016. "Firm Size as a Determinant of Firm Performance: The Case of Swine Raising," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(3), pages 1-13, September.
    10. Suchismita Ghosh & Ritu Pareek & Tarak Nath Sahu, 2023. "U‐shaped relationship between environmental performance and financial performance of non‐financial companies: An empirical assessment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1805-1815, July.
    11. Noor Fauziah Isnaeni & Khoirunurrofik Khoirunurrofik, 2021. "The effect of knowledge spillovers and human capital through technological intensity on employment growth in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 21-39, February.

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