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Financial performance analysis of eurozone listed companies using dupont model

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Resumo:The main objective of this paper is the analysis of factors that can influence the financial performance (measured by “return on equity”) of the Eurozone listed companies. For this purpose, we use the DuPont model to provide useful information to identify the main factors that affect profitability. The data was collected from financial statements of the Eurozone listed companies during the year 2018 (ORBIS database), and the final sample included 750 companies distributed across the 19 Eurozone countries. Using the Ordinary Least Squares (OLS) method, we studied the effects of four factors (tax burden, interest burden, EBIT margin, and assets turnover) in return on equity. The overall results suggest that all factors significantly have an influence in return on equity and, consequently, the financial performance of companies listed in the stock markets of Eurozone countries. The efficient use of total assets, measured by assets turnover, seems to be the most powerful factor with an impact of 0.94% in ROE, due to a variation of 1%. However, all the other factors also show a considerable influence on financial performance.
Autores principais:Baptista, Andreia
Outros Autores:Lopes, José Carlos; Alberto, Fernanda; Nunes, Alcina
Assunto:DuPont model Eurozone countries Financial performance Profitability ratios Return on equity Stock markets
Ano:2021
País:Portugal
Tipo de documento:comunicação em conferência
Tipo de acesso:acesso aberto
Instituição associada:Instituto Politécnico de Bragança
Idioma:inglês
Origem:Biblioteca Digital do IPB
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author Baptista, Andreia
author2 Lopes, José Carlos
Alberto, Fernanda
Nunes, Alcina
author2_role author
author
author
author_facet Baptista, Andreia
Lopes, José Carlos
Alberto, Fernanda
Nunes, Alcina
author_role author
contributor_name_str_mv Biblioteca Digital do IPB
country_str PT
creators_json_txt [{\"Person.name\":\"Baptista, Andreia\"},{\"Person.name\":\"Lopes, José Carlos\",\"Person.identifier.orcid\":\"0000-0002-0516-0076\"},{\"Person.name\":\"Alberto, Fernanda\"},{\"Person.name\":\"Nunes, Alcina\",\"Person.identifier.orcid\":\"0000-0003-4056-9747\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Biblioteca Digital do IPB
datacite.creators.creator.creatorName.fl_str_mv Baptista, Andreia
Lopes, José Carlos
Alberto, Fernanda
Nunes, Alcina
datacite.date.Accepted.fl_str_mv 2021-01-01T00:00:00Z
datacite.date.available.fl_str_mv 2023-02-22T15:09:42Z
datacite.date.embargoed.fl_str_mv 2023-02-22T15:09:42Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
datacite.titles.title.fl_str_mv Financial performance analysis of eurozone listed companies using dupont model
dc.contributor.none.fl_str_mv Biblioteca Digital do IPB
dc.creator.none.fl_str_mv Baptista, Andreia
Lopes, José Carlos
Alberto, Fernanda
Nunes, Alcina
dc.date.Accepted.fl_str_mv 2021-01-01T00:00:00Z
dc.date.available.fl_str_mv 2023-02-22T15:09:42Z
dc.date.embargoed.fl_str_mv 2023-02-22T15:09:42Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10198/27097
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv EuroMed Press
dc.rights.cclincense.fl_str_mv http://creativecommons.org/licenses/by/4.0/
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
dc.title.fl_str_mv Financial performance analysis of eurozone listed companies using dupont model
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_5794
description The main objective of this paper is the analysis of factors that can influence the financial performance (measured by “return on equity”) of the Eurozone listed companies. For this purpose, we use the DuPont model to provide useful information to identify the main factors that affect profitability. The data was collected from financial statements of the Eurozone listed companies during the year 2018 (ORBIS database), and the final sample included 750 companies distributed across the 19 Eurozone countries. Using the Ordinary Least Squares (OLS) method, we studied the effects of four factors (tax burden, interest burden, EBIT margin, and assets turnover) in return on equity. The overall results suggest that all factors significantly have an influence in return on equity and, consequently, the financial performance of companies listed in the stock markets of Eurozone countries. The efficient use of total assets, measured by assets turnover, seems to be the most powerful factor with an impact of 0.94% in ROE, due to a variation of 1%. However, all the other factors also show a considerable influence on financial performance.
dirty 0
eu_rights_str_mv openAccess
format conferencePaper
fulltext.url.fl_str_mv https://bibliotecadigital.ipb.pt/bitstreams/40a13dd4-df92-4cb0-b999-a4d2bd5ad63e/download
id ipb_37c09d7a3f12c2b431c5256b9711a521
identifier.url.fl_str_mv http://hdl.handle.net/10198/27097
instacron_str ipb
institution Instituto Politécnico de Bragança
instname_str Instituto Politécnico de Bragança
language eng
network_acronym_str ipb
network_name_str Biblioteca Digital do IPB
oai_identifier_str oai:bibliotecadigital.ipb.pt:10198/27097
organization_str_mv urn:organizationAcronym:ipb
person_str_mv Baptista, Andreia
Lopes, José Carlos
Lopes, José Carlos
https://www.ciencia-id.pt/0C1C-FDFE-8A61
0C1C-FDFE-8A61
http://orcid.org/0000-0002-0516-0076
0000-0002-0516-0076
Alberto, Fernanda
Nunes, Alcina
Nunes, Alcina
https://www.ciencia-id.pt/1111-680F-0CAF
1111-680F-0CAF
http://orcid.org/0000-0003-4056-9747
0000-0003-4056-9747
publishDate 2021
publisher.none.fl_str_mv EuroMed Press
reponame_str Biblioteca Digital do IPB
repository_id_str urn:repositoryAcronym:ipb
service_str_mv urn:repositoryAcronym:ipb
spelling engEuroMed Presspt_PTThe main objective of this paper is the analysis of factors that can influence the financial performance (measured by “return on equity”) of the Eurozone listed companies. For this purpose, we use the DuPont model to provide useful information to identify the main factors that affect profitability. The data was collected from financial statements of the Eurozone listed companies during the year 2018 (ORBIS database), and the final sample included 750 companies distributed across the 19 Eurozone countries. Using the Ordinary Least Squares (OLS) method, we studied the effects of four factors (tax burden, interest burden, EBIT margin, and assets turnover) in return on equity. The overall results suggest that all factors significantly have an influence in return on equity and, consequently, the financial performance of companies listed in the stock markets of Eurozone countries. The efficient use of total assets, measured by assets turnover, seems to be the most powerful factor with an impact of 0.94% in ROE, due to a variation of 1%. However, all the other factors also show a considerable influence on financial performance.application/pdfpt_PTFinancial performance analysis of eurozone listed companies using dupont modelBaptista, AndreiaPersonalLopes, José CarlosDSpacehttp://dspace.org/items/6f060c38-c86f-4cea-a408-10cd067bc0daDSpacehttp://dspace.org/items/6f060c38-c86f-4cea-a408-10cd067bc0daLopesJosé CarlosCiência IDhttps://www.ciencia-id.pt0C1C-FDFE-8A61ORCIDhttp://orcid.org0000-0002-0516-0076Alberto, FernandaPersonalNunes, AlcinaDSpacehttp://dspace.org/items/f96c3560-c1d3-432c-aa84-49982ea86106DSpacehttp://dspace.org/items/f96c3560-c1d3-432c-aa84-49982ea86106NunesAlcinaCiência IDhttps://www.ciencia-id.pt1111-680F-0CAFORCIDhttp://orcid.org0000-0003-4056-9747Researcher IDhttps://www.researcherid.comM-8259-2013Scopus Author IDhttps://www.scopus.com55907654000HostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.ptISBNIsPartOf978-9963-711-90-1ISSNIsPartOf2547-85162023-02-22T15:09:42Z20212021-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/27097http://purl.org/coar/access_right/c_abf2open accessDuPont modelEurozone countriesFinancial performanceProfitability ratiosReturn on equityStock markets1739262 bytesother research producthttp://purl.org/coar/resource_type/c_5794conference paper2021http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/40a13dd4-df92-4cb0-b999-a4d2bd5ad63e/download14th Annual Conference of the EuroMed Academy of Business: Contemporary Business Concepts and Strategies in the New Era5264
spellingShingle Financial performance analysis of eurozone listed companies using dupont model
Baptista, Andreia
DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
status SINGLETON
subject.fl_str_mv DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
title Financial performance analysis of eurozone listed companies using dupont model
title_full Financial performance analysis of eurozone listed companies using dupont model
title_fullStr Financial performance analysis of eurozone listed companies using dupont model
title_full_unstemmed Financial performance analysis of eurozone listed companies using dupont model
title_short Financial performance analysis of eurozone listed companies using dupont model
title_sort Financial performance analysis of eurozone listed companies using dupont model
topic DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
topic_facet DuPont model
Eurozone countries
Financial performance
Profitability ratios
Return on equity
Stock markets
url http://hdl.handle.net/10198/27097
visible 1