Impact of the Sector and of Internal Factors on Profitability of the Companies Listed on the Warsaw Stock Exchange
DOI:
https://doi.org/10.12775/DEM.2018.007Keywords
return on assets (ROA), return on equity (ROE), industry effect, panel data estimationAbstract
The aim of the article is to assess the impact of the sector environment and of selected internal factors on the profitability level of the companies listed on the Warsaw Stock Exchange in 1998-2016. An increase in the financial leverage, financial liquidity, non-debt tax shield and enterprise size cause a drop in the ROA. An increase in the ratio of fixed assets to the total assets results in an increase in the ROA. Similar results were obtained for the models estimated for the ROE. It means, that profitability of the examined companies results from the decisions made by the managers and from the impact of the sector environment.References
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