J 2020

Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis

GRODZIĆ, Vanja; Branislav MARIĆ; Mladen RADIŠIČ; Jarmila ŠEBESTOVÁ; Marcin LIS et al.

Basic information

Original name

Capital Investments and Manufacturing Firms’ Performance: Panel-Data Analysis

Authors

GRODZIĆ, Vanja; Branislav MARIĆ; Mladen RADIŠIČ; Jarmila ŠEBESTOVÁ and Marcin LIS
Lis Marcin.

Edition

Sustainability, 2020, 2071-1050

Other information

Language

English

Type of outcome

Article in a journal

Field of Study

50204 Business and management

Country of publisher

Switzerland

Confidentiality degree

is not subject to a state or trade secret

References:

Impact factor

Impact factor: 3.251

Marked to be transferred to RIV

Yes

RIV identification code

RIV/47813059:19520/20:A0000131

Organization unit

School of Business Administration in Karvina

DOI

UT WoS

EID Scopus

Keywords in English

capital investments; firm performance; profitability; sustainability; panel data

Tags

International impact, Reviewed

Abstract

In the original language

The main goal of this study was to examine the effects of capital investments on firm performance, using panel-data analysis. For this purpose, financial data were gathered for 60 manufacturing firms based in Serbia, in the period from 2004 to 2016. The main research hypotheses were developed in accordance with the definition, nature, and time aspect of capital investments. Therefore, empirical expectation of this study was that the relationship between capital investments and firm performance should be positive—they probably bring losses to the firm in the short term, but they should increase firm performance in the long term. Finally, the results have indeed shown that capital investments have statistically significant negative effect on the short-term performance, but positive effect on the long-term performance of the analyzed firms, while controlling for time-fixed effects and certain internal factors.