Determinants of financial performance measured by return on assets in Portugal

Monte, Ana Paula; Fernandes, António B.

http://hdl.handle.net/10198/16711

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Authors

Monte, Ana Paula

Fernandes, António B.

Abstract(s)

In this paper we use a unique, privately database with financial data (and some nonfinancial variables) of 1,024 enterprises headquartered in the interior north and center of mainland Portugal for the time period of 2006 to 2009 to answer to the research question: “The return on total net assets (ROA) is influenced by firm’s capital structure, sales return, location and economic activity sector?” Using a positivist quantitative approach by a descriptive and inferential analysis through a multivariate OLS regression analysis, we tested seven main hypotheses. The results indicate that the return on assets of these companies is influenced positive and statistically significant by the net sales return (before taxes), Location and negative and statistically significant by the capital structure of the company and owners capital. The gross investment and the economic activity sector are not statistically significant.

Keywords

ROA Determinants Capital structure

URI

http://hdl.handle.net/10198/16711

Citation

Monte, Ana Paula; Fernandes, António B. (2016). Determinants of financial performance measured by return on assets in Portugal. In 9th Finance Conference. Covilhã, Portugal