<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Recent studies reveal that uncertainty is a problem for the profitability of companies in various sectors. The purpose of this study was to investigate the impact of uncertainty on the profitability of textile companies in the EU 27. A number of models were performed using the random effects estimator. The results indicate that the uncertainty variable WUI negatively and significantly affects the profitability of the textile industry in all models. In addition, the results show that while equity to total assets and cash flow to operating revenue have a positive effect, capital intensity and operating in Eastern Europe have a negative effect on profitability. Also, size, current ratio, operating revenue to stocks and inflation do not seem to have a significant impact on profitability.</p>
</abstract>

Recent studies reveal that uncertainty is a problem for the profitability of companies in various sectors. The purpose of this study was to investigate the impact of uncertainty on the profitability of textile companies in the EU 27. A number of models were performed using the random effects estimator. The results indicate that the uncertainty variable WUI negatively and significantly affects the profitability of the textile industry in all models. In addition, the results show that while equity to total assets and cash flow to operating revenue have a positive effect, capital intensity and operating in Eastern Europe have a negative effect on profitability. Also, size, current ratio, operating revenue to stocks and inflation do not seem to have a significant impact on profitability.

The Impact of Uncertainty on Textile Companies Profitability in the EU 27

Fibres & Textiles in Eastern Europe

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The Impact of Uncertainty on Textile Companies Profitability in the EU 27"}

Recent studies reveal that uncertainty is a problem for the profitability of companies in various sectors. The purpose of this study was to investigate the...

The Impact of Uncertainty on Textile Companies Profitability in the EU 27

Article Category: Research Article

Published Online: Dec 15, 2023

Page range: 51 - 55

DOI: https://doi.org/10.2478/ftee-2023-0054

Keywords
ROA, textile companies, EU 27, random effect estimator

© 2023 Łukasiewicz Research Network-Łódź Institute of Technology, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Impact of Uncertainty on Textile Companies Profitability in the EU 27

Article Category: Research Article

Published Online: Dec 15, 2023

Page range: 51 - 55

DOI: https://doi.org/10.2478/ftee-2023-0054

KeywordsROA, textile companies, EU 27, random effect estimator

© 2023 Łukasiewicz Research Network-Łódź Institute of Technology, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
ROA, textile companies, EU 27, random effect estimator