Title: The financial performance of large and small firms: evidence from Greece

Authors: Theodore A. Papadogonas

Addresses: Athens University of Economics and Business, 10, Kivelis Street, 11146, Athens, Greece

Abstract: Greece, being the only country of south-eastern Europe with a long history within the European Union, is considered as a useful benchmark to draw conclusions about the process of adaptation of an economy to the EU environment. This paper attempts to specify possible differences in the main factors that determine firm profitability, using data from Greek manufacturing for 1995–1999. The analysis uses regression models and is performed on a longitudinal sample of 3035 firms, classified by size of employment. The econometric results indicate that size, managerial efficiency, debt structure, investment in fixed assets and sales growth affect significantly firm profitability. By discriminating firms according to size classes, it is possible to identify how the determinants of financial performance differentiate by firm size.

Keywords: profitability; firm size; financial performance; Greece; determinants; south-eastern Europe; financial services.

DOI: 10.1504/IJFSM.2007.011668

International Journal of Financial Services Management, 2007 Vol.2 No.1/2, pp.14 - 20

Published online: 14 Dec 2006 *

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