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Multilevel Modeling in Exploring Institutional Effects on Performance

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  • Vojtěch Olbrecht

    (Faculty of Business and Economics, Mendel university in Brno, Zemědělská 1, 602 00 Brno, Czech Republic)

Abstract

The article engages in exploring the differences between standard panel regression model and multilevel panel model while estimating growth models on a sample of European food manufacturing companies for period 2004-2013. The article provides an overview of both approaches, critically identifies their strengths and weaknesses and concludes by recommendation on specifics of usage of each of those. Results of models suggest positive impact of political and legal framework and openness of economy and negative impact of government expenditures and economic conditions on firm performance. Comparison of approaches shows that similar results are obtained, though with relative higher significance of multilevel model's coefficient. Theoretical background of Growth Theory and statistical methods suggest preference of multilevel model with a constrain of data availability.

Suggested Citation

  • Vojtěch Olbrecht, 2016. "Multilevel Modeling in Exploring Institutional Effects on Performance," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(6), pages 2087-2094.
    • Handle: RePEc:mup:actaun:actaun_2016064062087
    DOI: 10.11118/actaun201664062087
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    Cited by:

    1. Aleksandar B. Todorov, 2023. "Rule of Law and Large Firms Concentration in Southeast Europe," Bulgarian Economic Papers bep-2023-06, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Oct 2023.
    2. Aralica Zoran & Svilokos Tonci & Bacic Katarina, 2018. "Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 68-80, June.

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