PROFITABILITY ANALYSIS OF MEAT INDUSTRY IN SERBIA

Kristina Mijić, Stanislav Zekić, Dejan Jakšić

DOI Number
10.22190/FUEO1604379M
First page
379
Last page
386

Abstract


In this paper, profitability analysis of meat processing industry in Serbia was realized in period 2011-2015. Meat processing industry is one of the profitable sectors in the Republic of Serbia, with an average rate of ROA of 5.29. Even though companies in meat processing industry achieve positive net income, profitability is below referent value. In order to investigate which internal factors have a significant influence on the profitability of meat processing industry, a panel data regression was realized. The results show that companies with high liquidity ratio and growth in sales achieve better ROA. On the other side, high debt ratio negatively influences the level of ROA. Furthermore, the results show that the size of the company, fixed assets ratio and rate of investment, do not have an influence on the profitability of meat processing industry.


Keywords

Meat industry, Profitability, Internal profitability factors.

Full Text:

PDF

References


Asimakopoulos, I., Samitas, A., Papadogonas, T. (2009). Firm-specific and economy wide determinants of firm profitability-Greek evidence using panel data. Managerial Finance, 35 (11), 929-940.

Asiri, B. (2015). How investors perceive financial ratios at different growth opportunities and financial leverages. Journal of Business Studies Quarterly, 6 (3), 1-12.

Bruderl, J. (2005). Panel Data Analysis. Retrieved from: http://www2.sowi.uni-mannheim.de/lsssm/veranst/Panelanalyse.pdf Accessed on: May 5, 2016

Gajić M., Zekić S. (2013). Development characteristics of agricultural sector in Serbia, in: ed. Škorić D., Tomic D., Popovic V.: Agri-food Sector in Serbia – state and Challenges, Monography; Serbian Association of Agricultural Economists, and Serbian Academy of Science and Art – Board for Village, Belgrade; 73-90.

Geroski, P. A., Machin, S. J., Walters, C. F. (1997). Corporate growth and profitability. The Journal of Industrial Economics, 45 (2), 171-189.

Guariglia, A. (2009). Modeling the relationship between financial indicators and company performance – an empirical study for US listed companies. Dissertation. Vienna University of Economics and Business Administration.

Official Serbian Business Registers Agency (2016). Database. Retrieved from: http://www.apr.gov.rs Accessed on: September 5, 2016.

Pratheepan, T. (2014). A Panel data analysis of profitability determinants: Empirical results from Sri Lankan manufacturing companies. International Journal of Economics, Commerce and Managemen,. 2 (12), 1-9.

Rodić, J., Vukelić, G., Andrić, M. (2007). Teorija, politika i analiza bilansa. Beograd: Beoknjiga.

Statistical Office of the Republic of Serbia. (2012). Electronic Databases. Retrieved from: http://webrzs.stat.gov.rs Accessed on: July 28, 2016.

Titman, S., Wessels, R. (1988). The determinants of capital structure choice. Journal of Finance, (43), 1-19.

Whited, T. (1992). Debt, liquidity constraints and corporate investment: evidence from panel data. Journal of Finance, (47), 1425-1460.

Williams, R. (2015). Panel Data: Very Brief Overview. Retrieved from: https://www3.nd.edu/~rwilliam/stats2/Panel.pdf Accessed on: May, 10 2016.




DOI: https://doi.org/10.22190/FUEO1604379M

Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)