Determinants of financial performance measured by return on assets in Portugal
Conference Paper
Overview
Research
View All
Overview
abstract
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.
