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Exports and financial performances in French cosmetic industry:Long live the ‘lipstick effect’!

Author

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  • Mihai Mutascu

    (ESCE International Business School Paris, INSEEC U. Research Center, France)

  • Aurora Murgea

    (Faculty of Economics and Business Administration, West University of Timisoara, Romania)

Abstract

French cosmetic industry is of great interest given its agglomeration of firms, innovation and economies of scale, as Cosmetic Valley near Paris or PASS (Perfumes, Aroma, Scents, and Savours) in the Alpe-Cote d’Azur province. In this context, the paper analyses the impact of exports, as a key driver of globalization process, on financial performances of the French cosmetic companies, based on a sample with 704 cosmetic business entities, for the period 2003-2015. The methodology follows static and dynamic panel model estimations. The main finding shows that the exports have a positive linear impact on their financial performances, both for producers and distributors. We validate the existence of ‘lipstick effect’, since the rigidity of foreign cosmetics demand makes the exporters’ financial performances insensitive to the economic turbulences. Moreover, the producers seem to be more affected by the regulation adjustments, while the investments and debt management are very important elements for distribution companies.

Suggested Citation

  • Mihai Mutascu & Aurora Murgea, 2020. "Exports and financial performances in French cosmetic industry:Long live the ‘lipstick effect’!," Economic Research Guardian, Mutascu Publishing, vol. 10(1), pages 44-68, June.
    • Handle: RePEc:wei:journl:v:10:y:2020:i:1:p:44-68
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    References listed on IDEAS

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    Cited by:

    1. Camélia TURCU & Mihai MUTASCU & Albert LESSOUA, 2020. "Firms’ Performance and Exports: The Case of Romanian Winemakers," LEO Working Papers / DR LEO 2747, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    2. Albert Lessoua & Mihai Mutascu & Camélia Turcu, 2018. "Financial performance and exports: the case of Romanian winemakers," Working Papers 2018.07, International Network for Economic Research - INFER.

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    More about this item

    Keywords

    Exports; Financial performances; Panel analysis; Effects; French cosmetic industry;
    All these keywords.

    JEL classification:

    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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