Impact of the Sector and of Internal Factors on Profitability of the Companies Listed on the Warsaw Stock Exchange

Ewa Majerowska, Magdalena Gostkowska-Drzewicka

DOI: http://dx.doi.org/10.12775/DEM.2018.007

Abstract


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.

Keywords


return on assets (ROA), return on equity (ROE), industry effect, panel data estimation

Full Text:

PDF

References


Bamiatzi, V., Hall, G. (2009), Firm versus Sector Effects on Profitability and Growth: the Importance of Size and Interaction, International Journal of the Economics of Business, 16(2), 205-220, DOI: https://doi.org/10.1080/13571510902917517.

Bain, J. (1951), Relation of profit rate to industry concentration: American manufacturing, 1936–1940, Quarterly Journal of Economics, Vol. 65, 293–324, DOI: 10.2307/1882217.

Barburski, J.(2014), Kapitały własne jako podstawa bezpieczeństwa działalności gospodarczej na przykładzie przedsiębiorstw WIG 20 (Equity as a basis for business security, on the example of WIG 20 enterprises), Finanse, Rynki Finansowe, Ubezpieczenia (Finance, Financial Markets, Insurance) No. 67, 177-136.

Barney, J.B. (1991), Firm resources and sustained competitive advantage, Journal of Manage-ment, Vol. 17, No. 1, 99-120, DOI: https://doi.org/10.1177/014920639101700108.

Hawawini, G., Subramanian, V., Verdin P. (2003), Is Performance Driven by Industry – or Firm-Specific Factors? A New Look at the Evidence, Strategic Management Journal, Vol. 24, No. 1, 1-16, DOI: http://dx.doi.org/10.1002/smj.278.

Janus, A. (2006), Kapitał własny jako źródło finasowania działalności małych i średnich przedsiębiorstw (Equity as a source of financing of small and medium enterprise activity), Folia Oeconomica, No. 200, 69-78.

Jaworski, J., Czerwonka, L. (2017), Determinanty struktury kapitału przedsiębiorstw notowanych na GPW w Warszawie. Sektor usług (Determinants of the capital structure of enterprises listed on the Warsaw Stock Exchange. The service sector), Annales H – Oeconomia, Vol. 51, No. 4, 133-142.

Lee, J. (2009), Does Size Matter in Firm Performance? Evidence from US Public Firms, International Journal of the Economics of Business, 16(2), 189-203, DOI: https://doi.org/10.1080/13571510902917400.

Lisińska, K. (2012), Struktura kapitałowa przedsiębiorstw produkcyjnych w Polsce, Niemczech i Portugalii (Capital structure of production enterprises in Poland, Germany and Portugal), Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu (Scientific papers of the University of Economics in Wroclaw), No. 27, 449-458.

Marzec, J. (2010), Złote reguły finansowania w praktyce małych i średnich przedsiębiorstw w Polsce (Golden rules of financing in practice for small and medium enterprises in Po-land), Ekonomiczne problemy usług (Issues of economic service), No. 51, 143-152.

Matyjas, Z. (2012), Wpływ czynników oddziałujących na poziomie firmy oraz czynników sektorowych na wyniki finansowe spółek w świetle badań empirycznych (Impact of the company-level and sectoral factors affecting the financial results of companies, in the light of empirical research), Zarządzanie i Finanse (Management and finance), Vol. 4(2), 23-33.

Matyjas, Z. (2016), Wpływ poziomu sektora oraz firmy na wyniki przedsiębiorstw (Impact of the sector and the company level on enterprise results), Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu (Scientific works of the University of Economics in Wroclaw), No. 444, 307-316, DOI: 10.15611/pn.2016.444.28.

McGahan, A.M., Porter, M.E. (1997), How much does industry matter, really?, Strategic Man-agement Journal, 18, Summer Special Issue, 15-30, DOI: https://doi.org/10.1002/(SICI)1097-0266(199707)

Pierścionek, Z. (1997), Strategie rozwoju firmy (Company development strategies), Scientific Publishing PWN, Warsaw.

Porter, M.E. (2008), The five competitive forces that shape strategy, Harvard Business Review, 86(1), 79-93.

Porter, M. (1991), Towards a dynamic theory of strategy, Strategic Management Journal, Winter Special Issue 12, pp. 95–117.

Porter, M.E. (1992), Strategia konkurencji. Metody analizy sektorów i konkurentów (Competition strategy. Methods for analyzing sectors and competitors), Publishing: Polskie Wydawnictwo Ekonomiczne, Warsaw.

Ruefli, T.W., Wiggins, R.R. (2003), Industry, Corporate, and Segment Effects and Business Performance: a Non-Parametric Approach, Strategic Management Journal, Vol. 24, 861-879, DOI: https://doi.org/10.1002/smj.350

Rumelt, R.P. (1991), How much does industry matter?, Strategic Management Journal, Vol. 12, 167-185, DOI: https://doi.org/10.1002/smj.4250120302.

Schmalensee, R. (1985), Do markets differ much?, American Economic Review, 75, 341-351.

Slater, S., Olson, E. (2002), A fresh look at industry and market analysis, Business Horizons, Vol. 45, No. 1, 15–22.

Stierwald, A. (2010), Determinants of Profitability: An Analysis of Large Australian Firms, Melbourne Institute Working Paper, No. 3/10, 1-23. DOI: http://dx.doi.org/10.2139/ssrn.1632749.

Wernerfelt, B. (1984), A resource-based view of the firm, Strategic Management Journal, Vol. 5, No. 1, 171-80.

Wiśniewska, E. (2004), Rynek nieruchomości a gospodarka (Real estate vs. and economy), (in:) Zachodnie rynki nieruchomości (Western real estate markets), collective work, ed. by: E. Kucharska-Stasiak, Twigger, Warsaw.

Wrońska-Bukalska, E. (2014), Zróżnicowanie branżowe poziomu i struktury kapitału własnego (Industry diversification of the level and the structure of equity), Annales Universitatis Mariae Curie-Skłodowska, No. 48(3), 393-402.






ISSN (print) 1234-3862
ISSN (online) 2450-7067

Partnerzy platformy czasopism