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Does Firm Size Affect the Firm Profitability? Empirical Evidence from Romania

Author

Listed:
  • Georgeta VINTILA

    (The Bucharest University of Economic Studies)

  • Florinita DUCA

    (The Bucharest University of Economic Studies)

Abstract

This study advances the understanding of the relationship between firm size and profitability, motivated by the question whether larger firms are more profitable. The nature of the relationship between firm size and firm profitability is examined by on data for 100 firms listed in 2010 at the Bucharest Stock Exchange. The results revealed that firm size has a significant negative influence on firm profitability. Additionally, results showed that leverage is statistically significantly, while liquidity didn’t prove to be an important explanatory variable of firms’ profitability.

Suggested Citation

  • Georgeta VINTILA & Florinita DUCA, 2013. "Does Firm Size Affect the Firm Profitability? Empirical Evidence from Romania," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 61(4), pages 87-92, December.
    • Handle: RePEc:rsr:supplm:v:61:y:2013:i:4:p:87-92
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    Citations

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    Cited by:

    1. Aduralere Opeyemi, OYELADE, 2019. "The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(1), pages 1-11, March.
    2. Roopali Batra & Ashima Kalia, 2016. "Rethinking and Redefining the Determinants of Corporate Profitability," Global Business Review, International Management Institute, vol. 17(4), pages 921-933, August.
    3. Vintilă Georgeta & Nenu Elena Alexandra & Gherghina Ştefan Cristian, 2014. "Empirical Research Towards the Factors Influencing Corporate Financial Performance on the Bucharest Stock Exchange," Scientific Annals of Economics and Business, Sciendo, vol. 61(2), pages 219-233, December.

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