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 (688 Serbia, guarantor), Branislav MARIĆ (688 Serbia), Mladen RADIŠIČ (688 Serbia), Jarmila ŠEBESTOVÁ (203 Czech Republic, belonging to the institution) and Marcin LIS (616 Poland)
Lis Marcin.

Edition

Sustainability, 2020, 2071-1050

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50204 Business and management

Country of publisher

Switzerland

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

RIV identification code

RIV/47813059:19520/20:A0000131

Organization unit

School of Business Administration in Karvina

UT WoS

000522460200407

Keywords in English

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

Tags

International impact, Reviewed

Abstract

V originále

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.