Profitability in Portuguese service industries: a panel data approach |
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| Authors: | Paulo J Maçãs Nunes Zélia M Serrasqueiro Tiago N Sequeira |
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| Institution: | 1. Department of Management and Economics , CEFAGE Research Centre, évora University , Estrada do Sineiro, 6200, Covilh? , Portugal macas@ubi.pt;3. Department of Management and Economics , CEFAGE Research Centre, évora University , Estrada do Sineiro, 6200, Covilh? , Portugal;4. Department of Management and Economics , INOVA Research Centre , Faculdade de Economia, Universidade Nova de Lisboa, Lisbon , Portugal |
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| Abstract: | Based on various panel models, we study the profitability determinants of Portuguese service industries. The results obtained show that profitability is persistent over time, and that for larger companies with greater growth, a lower level of debt and lower level of fixed assets are more profitable. Considering the results obtained, we can conclude that diversification of activities and motivation as well as the tendency to innovate contribute positively to increased profitability in Portuguese service industries, whereas the need to pay off debt charges periodically harms profitability. The government would be well advised to create special credit channels that would permit the greater growth of Portuguese service industries, especially those most inclined to innovate. |
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| Keywords: | companies growth debt dynamic panel estimators liquidity profitability service industries size static panel models tangibility |
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