企业盈利能力及其潜在驱动因素：希腊制造业的微观层面分析

European

commission

EconomicandFinancialAffairs

Firms,ProfitabilityandPotentialDriversAMicro-LevelAnalysisoftheGreek

ManufacturingSector

ManueleZannini,ManosSfakianakisandElisavetSotiriadou

EUROPEANECONOMY

ECONOMICBRIEF093|JULY2025

EuropeanCommission

Directorate-GeneralforEconomicandFinancialAffairs

Firms'ProfitabilityandPotentialDrivers:AMicro-LevelAnalysisoftheGreekManufacturingSector

ManueleZannini,ManosSfakianakisandElisavetSotiriadou

Abstract

Thiseconomicbriefexaminesthepotentialdriversoffirmprofitabilityatthemicroeconomiclevel,withafocusontheGreekManufacturingSector.Ouranalysisaimstoprovideanunderstandingofprofitabilitydynamicsanditscorrelationwithvariousfinancialandnon-financialfirm’sinternalfactors.Usingfirm-leveldatafromtheOrbisdatabasecoveringtheperiod2003-2023,ourmethodologyemployspaneldataregressionanalysistoinvestigatetheserelationships.Ourresultssuggestthatthelargerthefirm,investmentinfixedassets,growthinsalesandolderageareassociatedwithhigherprofitability,whereasthelevelofindebtednesshasanegativecorrelationwithfirm’sfinancialperformance.Moreover,thelevelofliquiditydoesnotshowsignificantresultsinouranalysisandthereforeseemnottoberelatedtothefirm’slevelofprofitability.OurfindingsunderscoretheimportanceoftargetedmeasurestoenhancetheprofitabilityofGreekfirmsand,thus,theirgrowthpotential.Possibleactionsincludefacilitatingaccesstocapital,especiallyforSmallandMediumEnterprises(SMEs),encouragingoperationalscale-upsthroughsalesexpansionandtargetedinvestmentsinfixedassets.Additionally,thestudyhighlightstheneedtofurtherdevelopGreece’scapitalmarkets,enablingfirmstoaccessawiderrangeoffinancingoptionsbeyondtraditionalbanklending,andprovidinglow-costfinancingtofirmsthroughcreditguaranteeschemesorgovernment-backedloanstomitigatehighcostofdebt.

JELClassification:G31,G32,M21,L21,L25.

Keywords:Greece,Profitability,Firmperformance,Determinantsofprofitability,Manufacturingsector,Businessstructure,CorporateFinance,CapitalExpenditure,CorporateInvestment,FinancialRatios

Acknowledgements:ThisbriefbenefitedfromvaluablecommentsbyLucTholoniat,JuliaLendvai,MichaelSket,JonasFischer,MariosChristodoulou,ChristosAxioglou,JuditAntalandAlessandraCepparulo.

Contact:ManosSfakianakis,

manos.sfakianakis@ec.europa.eu,

ManueleZannini

manuele.zannini@

ext.ec.europa.eu

andElisavetSotiriadou,

elisavet.sotiriadou@ec.europa.eu,

EuropeanCommission,Directorate-GeneralforEconomicandFinancialAffairs,UnitF2:FinlandandGreece.

EUROPEANECONOMYEconomicBrief093

EuropeanEconomyEconomicBriefsIssue093|July2026

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INTRODUCTION

Profitabilityiscrucialforafirm'sgrowth,servingasanindicatorofmanagement'ssuccess,shareholders'satisfaction,andattractivenesstoinvestors.Forthepurposeofthisanalysis,wedefineprofitabilityasafirm'sgeneratedprofitduringagivenperiodrelativetoitstotalassets.Firmsmaximiseprofitabilitybydeveloping,implementingandmaintainingeffectivestrategiesthatenhancetheirperformance.Inthisprocess,analysingthefactorsassociatedwithprofitabilityallowsfirmstomakeinformeddecisionsandbettersettheirobjectives.Furthermore,firms’profitabilityiscloselylinkedtobroadereconomicoutcomes,includingeconomicgrowth,higheremploymentrates,innovation,andtechnologicalprogress.1

Profitabilitycanberelatedtoacombinationofafirm’sinternalcharacteristics,suchasitssizeandsalesgrowth,itsorganisationalandcapitalstructure,itsabilitytoaccessexternalfinancing,itsoperatinghistory,ortheproprietaryknow-how.Industry-relatedadvantages,includingtheavailabilityofkeyresourcesandrelevanttechnology,economiesofscale,marketconcentration,barrierstoentryorexit2(e.g.,inmonopolistic,oligopolistic,orimperfectlycompetitivemarkets,firm(s)caninfluencepriceandoutput,allowingthemtosetpricesabovemarginalcost),orcountry-leveladvantages,suchasbeneficialtradingconditions,favouringgovernmentalandregulatorypolicies,canalsoreinforcefirms’potentialtogenerateprofitsandexpand.RecentpolicydiscussionsonEuropeancompetitivenessemphasisethecentralroleofinvestmentandfinancingconditionsinshapingfirms’long-termprofitabilityandgrowth.TheDraghiReport(Draghi,2024)onthefutureofEuropeancompetitivenessidentifiesinsufficientpublicandprivateinvestmentasakeyfactorbehindEurope’sweakproductivitygrowthandlimitedcapacitytoscaleinnovativefirms.Strengtheninginvestmentinproductiveandinnovativeassetsisseenasessentialtosustainingfirms’growthandlong-termeconomicperformance.Atthesametime,thereporthighlightsstructuralissuesinaccesstofinance—particularlytheunderdevelopmentofcapitalmarkets—whichconstrainfirms’abilitytoinvest,innovate,andexpand.Improvingfinancingconditionsisthereforepresentedasnecessarytocomplementinvestment-ledstrategiesaimedatenhancingcompetitiveness.

TheGreekeconomyexperiencedsignificanteconomicandstructuraltransformationsduringandsubsequenttothepublicdebtcrisisstartedin2009,whileitrecordedadynamicrecoverypostCOVID-19.Specifically,Greece’srealGDPgrowthcontinuestooutperformtheEUaveragesince2021,coupledbystrongprivateconsumption,areboundtourismandRRP-driveninvestments(CountryReport-Greece2025).However,structuralproductivitychallengespersist,withoverrelianceontraditionallylowerproductivitysectors(e.g.,accommodation,foodandservices).TheeconomyischaracterisedbyahighnumberofSmallandMediumEnterprises(SMEs),whichfurtherlimitscompetitiveness,globalmarketaccess,andResearchandDevelopment(R&D)investment.Assessingfirms’profitabilityisparticularlypertinentinthecaseofGreece,wheretheprolongedsovereigndebtcrisisledtoasharpcontractionindomesticdemandandeconomicactivity.Asaresult,duringtheyearsofthecrisis,therewasapronounceddeteriorationincorporateprofitability,coupledwithlowerinvestmentcapacityandconstrainedexternalfinancingduetotheincreasingcreditriskoffirms.

Greece’smanufacturingsectorhasemergedasakeydriverofeconomicresilienceandexportgrowth,withitsGrossValueAdded(GVA)contributionrisingto9.1%ofGDPin20253from7.8%in2019.Itaccountsfornearlytwo-thirdsofthecountry’sgoodsexportsand9.9%oftotalemployment.4Thesector’sstrengthslieinindustriessuchasfood&beverage,chemicals,andmetals.However,despitethisrobustperformanceintraditionalsegments,thesectorunderperformsinhigh-value-addedactivities,suchasmedium-to-high-techmanufacturing.5Also,digitaladoptionandextroversion,includingArtificial

1Yazdanfar,2013.

2Goddardetal.,2005,Giovanis&Ozdamar,2014.

3Eurostat:Grossvalueaddedandincomebymainindustry(NACERev.2),availablehere:

[nama_10_a10]Grossvalueadded

andincomebymainindustry(NACERev.2).

4EuropeanInnovationScoreboard2025-Greece.Sectoralcomparisonofemploymentratesispresentedinthe‘’OverviewofGreece’sBusinessStructureTable1:EnterprisestatisticsbyNACERev.2activityinGreece,2023”,wheretheemploymentrateofmanufacturingsectorin2023stoodat11.4%,excludingthefinancialsector.

5AccordingtoCountryReportGreece2025,thevalueaddedinmedium-tohigh-techmanufacturinginGreeceasapercentageoftotalvalueaddedstandsat1.36%comparedtotheEUaverageof5.25%.

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Intelligence(AI),cloudcomputinganddataanalytics,islaggingbehindEUbenchmarks,6whichcanalsobeattributedtothehighpercentageofSMEs.7Inthesamecontext,thecountry’semploymentshareinhighandmediumhigh-techsectorsstandsat16%comparedtotheEU’s38.1%.ThesectorischallengedbyskillsmismatchingandinsufficientInformationandComputerTechnology(ICT)specialists.Giventhesector’scriticalrole,atargetedanalysisofprofitabilitydynamicswouldhelpclarifyhowfirm-specificfactorsshapeprofitabilityand,inturn,contributetosustainedgrowth.

Takingintoaccounttheabove,themotivationbehindthisstudyistoanalysefirm’sinternalfactorsassociatedwithprofitability,usingasetofGreekmanufacturingfirms.Byexaminingtherelationshipsbetweenprofitabilityandasetofinternalfactors,weaimtoprovidedeeperinsightsintohowthesecollectivelyshapefinancialoutcomesofthemanufacturingsectorandthereforeinformrelatedpolicydiscussions.

ProfitabilitywillbemeasuredbyReturnonAssets(ROA),akeyratiodefinedasnetincomeovertotalassets,whichreflectstheoperatingefficiencyofafirmingeneratingprofitsfromitsassets.Traditionally,theperformanceofthemanufacturingsectorfirmshasbeenevaluatedusingfinancialperformancemeasuressuchasreturnonassets,profitmarginandreturnonequity.Theseindicatorsarealsousedbyinvestors,lenders,andcreditratingagenciestoevaluatefirms’financialhealthovertime.Oneoftheadvantagesoffinancialperformancemeasuresaretheireaseofcalculationandtheirclearlydefined,commonlyuseddefinitionsintheliterature.Moreover,financialdataareavailableforspecifictypeofcompaniesinEU’sMemberStatesbecauseoflegalreportingobligationsandthereforecanbeeasilycollected,whichalsoallowstoimplementcross-countrystudies.PreviousstudieshaveexaminedthefactorsthatinfluenceprofitabilityoffirmsinGreeceusingbalancesheetratios8andsimilaranalyseshavealsobeenconductedonothercountriesoftheEU,aswellasaroundtheworld.9

TheEconomicBriefisstructuredasfollows.Section2includesanoverviewofthebusinessstructureinGreecebasedonEurostat’sStructuralBusinessStatistics(SBS).Section3providesthetheoreticalframeworkforourstudyandadescriptionofthevariablesconsidered.Section4focusesondata,descriptivestatisticsandthemodelspecification.Section5presentstheresultsoftheanalysisandhighlightstheimpactofspecificfactorstofirm’sprofitability.Section6concludesbyprovidingpolicyrecommendationsbasedonourfindings.TheAnnexesprovidefurtheranalysis,includingadetaileddescriptionofthedatacleaningprocessthatwasimplementedtoobtainthefinalsampleofcompaniesanalysed,additionaldescriptivestatisticsconcerningthevariablesofinterestandmoredetailedregressionresults.

OVERVIEWOFGREECE’SBUSINESSSTRUCTURE

TounderstandthecompositionanddynamicsofGreece’sbusinesslandscape,weuse2022and2023datafromEurostat’sStructuralBusinessStatistics(SBS)10,whichalsoallowtostudytherelativecontributionsofSmallandMediumEnterprises(SMEs)andlargeenterprisestoeconomicgrowthandjobcreation.Theanalysisfocusesonkeyindicators,includingthesectoralshareoffirms,sectoralturnover

6EuropeanInnovationScoreboard2025-Greece:EISindicatorsshowGreece’sbelow-EU-averageperformanceinexportsofmediumandhightechnologyproducts(19.7%oftheEUaveragein2025),aswellasknowledge-intensiveservicesexports(63.1%oftheEUaveragein2025).

7SAFESurvey-AccesstoFinanceofEnterprisesintheeuroarea-Fourthquarterof2025,byECBandEUCommission:SMEsfacedpersistentfinancingchallenges,withhigherbankloanrejectionratesthanlargerfirms,elevatedinterestrates,andstrictercollateralrequirements.

8Asimakopoulosetal.,2009;Agiomirgianakisetal.,2013.

9StudiesonotherEUcountries:Yazdanfar,2013;Goddardetal.,2006;Pervanetal.,2019;Pattitonietal.2014;DelGattoetal.,2019;Csapietal.,2020;Sala-Ríos,2024.Studiesonnon-EUcountries:Alarussietal.,2018;Akben-Selcuketal.,2016;Zainudinetal.,2018;Flaminietal.,2009;AborJ.,2005.

10Structuralbusinessstatistics(SBS)areusedasasourceofinformationtounderstandthedetailedstructure,economicactivityandperformanceofbusinessesacrosstheEuropeanUnion(EU)anditsMemberStates.SBScoverthe'businesseconomy'(NACERev.2sectionsBtoN,PtoRaswellasdivisionS95andS96)whichincludes:industry,construction,distributivetradesandservices.

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andvalueadded,aswellasthedistributionofemploymentacrossdifferentsectors.ThemaindataofthisanalysisaresummarisedinTable1.

Greece’sbusinessstructurepresentsseveralkeycharacteristicsthathighlightthesignificantroleofservicesintheeconomy.11Thewholesaleandretailtradesector,alongwithprofessional,scientific,andtechnicalactivities(legalandaccounting,architecturalandengineering,managementconsultancy),aswellastheaccommodationandfoodservicesactivities,accountforthelargestsharesoffirmsinthecountry,withpercentagesof24.3%,17.6%,and11.8%,respectively.

TheoverallworkforceoftheGreekfirmsintheconsideredsectorsreachedover3.4millionindividualsin2023.Serviceactivitiesdominateemployment,withmorethanhalfofthelabourforceemployedinthethreelargestsectorsmentionedabove.Manufacturing,however,represents11.4%oftotalemployment,highlightingitsimportancealongsideservices.

Table1:EnterprisestatisticsbyNACERev.2activityinGreece,2023

Economicactivities-NACERev.2

Enterprises-number

%

Total

Persons

employed-number

%

Total

Net

turnover-million

euro

%

Total

Miningandquarrying

551

0.1%

6,047

0.2%

913

0.2%

Manufacturing

57,326

6.3%

388,350

11.4%

90,330

23.0%

Electricity,gas,steamandairconditioningsupply

12,315

1.3%

30,959

0.9%

22,447

5.7%

Watersupply;sewerage,wastemanagementandremediationactivities

2,013

0.2%

16,542

0.5%

1,931

0.5%

Construction

72,631

7.9%

186,276

5.5%

18,544

4.7%

Wholesaleandretailtrade;repairofmotorvehiclesandmotorcycles

222,793

24.3%

838,882

24.5%

152,330

38.7%

Transportationandstorage

66,538

7.3%

188,073

5.5%

21,393

5.4%

Accommodationandfoodserviceactivities

108,413

11.8%

725,725

21.2%

22,147

5.6%

Informationandcommunication

25,278

2.8%

112,585

3.3%

13,318

3.4%

Realestateactivities

16,117

1.8%

30,851

0.9%

3,962

1.0%

Professional,scientificandtechnicalactivities

161,222

17.6%

291,634

8.5%

16,582

4.2%

Administrativeandsupportserviceactivities

26,908

2.9%

177,936

5.2%

10,123

2.6%

Education

23,620

2.6%

113,095

3.3%

1,804

0.5%

Humanhealthandsocialworkactivities

65,795

7.2%

160,868

4.7%

5,998

1.5%

Arts,entertainmentandrecreation

19,384

2.1%

69,618

2.0%

9,863

2.5%

Repairofcomputersandpersonalandhouseholdgoods

6,766

0.7%

11,003

0.3%

423

0.1%

Otherpersonalserviceactivities

28,703

3.1%

69,000

2.0%

1,027

0.3%

Total

916,373

100%

3,417,444

100%

393,134

100%

Note:ThesectorsincludedinthetablearethoseEurostatdefinesas‘businesseconomy’,withtheexclusionofthe“Financialandinsuranceactivities”sector.Percentagesarethencomputedbycomparingeachsector’svaluetothetotal.Thetablehighlightsthemanufacturingsectorsinceitwillbethefocusofouranalysis.

Source:Eurostat

(sbs_sc_ovw)

,2023.

In2023,GreekfirmsgeneratedatotalturnoverofapproximatelyEUR393billion.Thedistributivetradewastheleadingsectoramongthoseconsideredintheanalysis,contributing38.7%ofthetotal,followedbymanufacturing,whichaccountedfor23%ofthetotal,showingagainitsrelevancewithintheGreekbusinesseconomy.Nonetheless,manufacturingcontributedto19.5%ofthetotalvalueadded,representingthesecondlargestshareandbeingveryclosetothedistributivetradesector,whosesharecorrespondedto22.6%ofthetotal.However,comparedtootherEUcountries,themanufacturingsectorinGreeceaccountsforasmallershareofthetotalbusinesseconomy’sturnoverandthefigureremainsbelowtheEUaverage(27.3%in2023).12

11Figuresreportedinthissection(aswellascomputedpercentages)concernsectorsrepresentingthebusinesseconomy,excludingthefinancialandinsurancesector.

12FiguresforotherEUcountriesarethefollowing:Germany30.8%,Ireland32.2%,Spain24.6%,France24.5%,Italy30.4%,Poland28.9%,Portugal23.5%.Source:Eurostat,2023

[sbs_sc_ovw].

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Asillustratedinfigure1,theGreekeconomyischaracterisedbyaprevalenceofsmallbusinesses,with

micro-enterprises(0-9employees)makingup94.2%ofallbusinessesandaccountingforapproximately25%oftotalturnover.Inthemanufacturingsector,micro-enterprisesaccountfor89.8%offirms,butcontributewithonly7.4%tothesector'stotalturnover.Whenincludingsmallenterprises,companieswithfewerthan50employeescomprise99.4%ofallGreekbusinessesand98.3%ofmanufacturingfirms.Moreover,whenmedium-sizedenterprisesarealsoconsidered,SMEsmakeup99.9%ofallbusinesses(and99.7%ofmanufacturingcompanies),contributing67%tothetotalturnoverin2023.13Conversely,largeenterpriseswith250ormoreemployeesareextremelyrare,accountingforonly0.07%ofallbusinesses,14witharound20%oftheseoperatinginthemanufacturingsector.Althoughscarce,largefirmsplayasignificantrole,generating33%ofthetotalbusinesseconomy'sturnover.Theirimpactisevenmorepronouncedwhenconsideringonlythemanufacturingsector,accountingfor61%ofthesector'stotalturnover.GreecehasalsothehighestproportionoftotalemploymentinSMEswithintheEU,witharemarkable84.3%oftheworkforceemployedbythesebusinesses.TheEuropeanCommissionmonitorsSMEsperformancethroughtheSMEPerformanceReviewtool,15accordingtowhichin2024,SMEsrealvalueaddedinGreecegrewby0.6%andemploymentby2.9%,withmicrofirmsdrivingtheaggregatedgrowthrates.

Manufacturing(%)

250+persons(Large)50–249persons(Medium)20–49persons(Small)

10–19persons(Small)0–9persons(Micro)

0,27%

18,20%I1,45%

8,47%3,18%

4,64%

5,28%

7,40%

61,29%

89,82%

0%50%100%

TurnoverNumberoffirms

Figure1:DistributionofenterprisesandturnoverinGreecebysizeclass,2023(%)

AllSectors(%)

250+persons(Large)50–249persons(Medium)20–49persons(Small)

10–19persons(Small)

0–9persons(Micro)

33,23

0,07%

20,70%0,55%

12,48%1,69%

8,53%3,45%

25,06%

%

94,23%

0%50%100%

TurnoverNumberoffirms

Source:Eurostat,SBS,2023.

THEORETICALFRAMEWORK-PROFITABILITYMEASUREANDFIRM’SFACTORS

Inourresearch,theGreekmanufacturingsectorisclassifiedunderNACERev.2activity,whichisthestatisticalclassificationofeconomicactivitiesintheEuropeanUnion.TheNACERev.2manufacturingactivityiscomposedof24distinctcategories(i.e.,machineryandequipment,foodandbeverages,motorvehicles,plastic,etc.),andischaracterisedbyfewfirmswithhighmarketshareintermsofturnover,ahighamountofSMEs(seeFigure1).Asmentionedintheintroduction,profitabilitymightbesignificantlyassociatedwithseveralfirms’internalfactors(size,age,sales,investments,etc.)andexternalones(macroeconomicfactors,industryandmarketcharacteristics,governmentpolicies,etc.).Morespecifically,accordingtotheory,therearethreemaincategoriesinwhichdeterminantsofprofitabilitycanbeclassifiedinto:firm-specificcharacteristics,industryvariables,andmarket-relatedvariables,whichare

13EuropeanCommission,

SMEPerformanceReview-InternalMarket,Industry,EntrepreneurshipandSMEs,

SMEfactsheetforGreece.

14Accordingto2023data,thenumberoflargefirmsinGreeceamountedto664consideringsectorslistedintable1.Source:Eurostat,2023

[sbs_sc_ovw].

15AlthoughGreecepresentsoneofthehighestsharesofSMEsintheEU,itmustbeacknowledgedthatSMEsconstitutethebulkoftheeconomyintheEUandthatthereareotherEUcountriesexhibitingsimilarfigures.

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demonstratedbydifferentapproachesandconceptualframeworks.Traditionalapproachessuchasthestructure-conduct-performance(SCP)andthemarket-basedview(MBV)emphasisetheroleofmarket'sstructureandindustryconditionsininfluencingtheconductoffirmswithinthatenvironment.Theorganisation-environmentstructure-performance(OESP)conceptexploreshowanorganisation'sexternalforces(economic,technological,social,political,legal,etc.)influenceitsinternalstructure,whichinturnaffectsitsperformance.Thestrategy-structure-performance(SSP)focusesonthefirm’sorganisationstructureanditsstrategicchoicesandhowthesecanleadtosuperiorbusinessperformance.Finally,theResourcebasedview(RBV)stressestheimportanceofafirm’suniqueinternalresourcesandcapabilitiesandhowfirmsgaincompetitiveadvantageusingtheseresources.Therefore,thisapproachsuggeststhatafirm’sperformanceismainlydeterminedbyinternalratherthanexternalvariables.16

Thisresearchmainlyfocusesoninternalfactors(RBVapproach)andallvariableswerechosenbasedonpreviousliteratureanddataavailability.Thefactorsassociatedwithprofitabilitythatwillbeconsideredaresize,leverage(totaldebttototalassetratio),investment(growthrateinfixedassets),salesgrowth,liquidity(currentratio)andage.Whenanalysingafirm'sprofitability,itssizeisanimportantconsideration,aslargercompaniesmaybenefitfromeconomiesofscaleandeasieraccesstocapitalmarketsandbankfinancing.Totalsaleswereusedasaproxyoffirmsizeduetothemoreextendedavailabilityofannualdata.17Leverage,anindicatorofindebtedness,helpsexplainwhethercompaniesthatresorttoexternaldebtcaneffectivelyutilisenewfundstoexpandsalesandincreaseprofitability,oriftheyfacedecreasedprofitabilityduetohighfinancingcosts.Investmentsarecrucialforafirm'sexpansionandinnovation,andanincreaseinafirm'sinvestmentcanleadtohigherproductivityandreturns.Moreover,itisassumedthat(especiallywhenconsideringthemanufacturingsector)mostofthenewinvestmentismaterialisedthroughtheincreaseoffixedassets.Growthinsalesisanothermeasureofexpansionofthefirmandallowsustoinvestigatehowchangesinsalesrelatetoprofitability.Liquidity,measuredbytheratioofcurrentassetstocurrentliabilities,assessesafirm'sabilitytomeetitsfinancialobligations.Finally,weincludefirms’agetoassessitscorrelationwithprofitability.Whileolderfirmsmaybenefitfrompositivelearningeffects,ouranalysisaimstoexplorewhetheragecouldalsopotentiallyhinderprofitabilityorwhetheryoungerfirmsatthebeginningoftheiroperationstargetmoresalesexpansion,ratherthanachievinghighprofits.Table2liststhevariablesusedinouranalysistogetherwiththeformulasfortheircomputation.

Table2:Measurementofvariables.

Variables

Economic

interpretation

Formula

DependentVariable

ReturnonAssets(ROA)

Profitabilityindicator

Netincome/Totalassets(*)

IndependentVariables

GrossFixedInvestment

Investmentratio

(Grossfixedassets[T]-Grossfixedassets[T-1])/(grossfixedassets[T-1])

Size

Sizeofthefirm

Naturallogarithmofsales

Leverageratio

Indebtednessratio

Totaldebt/Totalassets

SalesGrowth

Revenuesexpansion

(Totalnetsales[T]–Totalnetsales[T-1])/Totalnetsales[T-1]

Currentratio

Liquidityratio

Currentassets/Currentliabilities*100

Age

Ageofthefirm

NaturallogarithmofAge

Age:CurrentYear-Firm’sincorporationdate

Note:(*)Netincome=TotalNetOperatingIncomeBeforeExtraordinaryItemsandTaxes-ApplicableIncomeTaxfortheYear-OtherTaxes+PriorPeriodTaxAuditAdjustments+ExtraordinaryItems.

16Mason,1949;Bain,1951,1956(SCP);Porter,1980(MBV);Lawrenceetal.,1967(OESP);Chandler,1962(SSP);Wernerfelt,1984(RBV),Barney,1991(RBV).

17Thismeasureofsize(i.e.sales)ismorepronetofluctuationinthemarketthanalternativemeasures(basedonthenumberofemployeesorsizeofassets)whichreflectsomemorestructuraleffects.

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DATAANDMETHODOLOGY

DATA,DESCRIPTIVESTATISTICSANDCORRELATIONRESULTS

ThedatasourceforourvariablesistheOrbisdatabase,whichfocusesonprivatefirms’financials,ownershipandlinkages,anditisprovidedbyMoody’s.Orbisoffersalargeamountofdataavailablebothforlistedandunlistedcompanies(activeorinactive18),bothpublicandprivate,allowingustocollectinformationonseveralaspects,suchasindustryclassification,legalandaccountinformation,andfinancialdata(includingbalancesheetdataandprofitandlossaccounts).Therefore,itallowsbuildingnationalfirmleveldatasetstargetingspecificsectors.

Asalreadymentioned,theanalysisofthisbriefisfocusedonGreekcompanies,morespecificallyonthemanufacturingsector.Therelevantdataforthisstudycoverstheperiod2003-2023(i.e.,21years),allowingustoalsoanalysetrendsovertheyears,andconsistsofasampleof4,731companies.Becausenotallfirmsinthesamplewerelistedovertheentireobservationperiodduetoattritionorlateentry,thedataconstituteanunbalancedpanel,comprisingatotalof62,014firm-yearobservations.Thedatasetreflectsanincreasingnumberofobservationsinrecentyears(asshowninAnnex2–table6),consistentwithgreaterdataavailabilityduringthisperiod19,andincludesfirmsofdifferentsize,frommicrotolargecompanies.Thesample