Determinants of firm profitability: the case of portuguese meat manufacturing sector between 2014 – 2020 Conference Paper uri icon


  • The research attempts to provide insights into the profitability of Portuguese meat manufacturing sector and its determining factors. A balanced data panel of 233 Portuguese firms between 2014 – 2020 is examined using static and dynamic panel estimators. Return on Assets is a proxy of firm profitability. Explanatory variables involve the firm characteristics, industrial attributes, and external environment. The results show that the average profitability of the Portuguese meat manufacturing sector is relatively low with a significant disparity in performance across the firms. Next, the paper reveals influencing factors associated with the sector´s success, making meat manufacturing the most valued activity in Portuguese agricultural production. Firm characteristics are highly related to profitability while macro factors show no significant impacts on the firms´ performance. Hence, the study provides useful information for policymakers and business managers in introducing measures and policies to improve the firms´ profitability.

publication date

  • January 1, 2023