Mid-Sized Italian manufacturing firms: a panel data analysis on profitability

Migliardo, Carlo and Schilirò, Daniele (2016): Mid-Sized Italian manufacturing firms: a panel data analysis on profitability. Published in: Journal of Advanced Studies in Finance , Vol. VII, No. 2(14) (December 2016): pp. 129-145.

Abstract

This paper aims to provide an empirical analysis concerning the different aspects of profitability of the Italian manufacturing firms of intermediate size, namely medium and medium-large size companies, for the period 2004-2010. It analyzes various aspects of firm profitability relating corporate structures, that is, capital structure, risk component, asset composition, and growth opportunities. The study investigates firm profitability by using econometric panel-data techniques, such as the system dynamic GMM estimator that assures the robustness of our empirical analysis. One of the main results of our investigation is that we find a significant and negative impact of capital structure (i.e. leverage and tangibility) and risk component on firm profitability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Mid-sized Italian firms; profitability: panel data; GMM
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; L - Industrial Organization > L6 - Industry Studies: Manufacturing; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General

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