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

<p>The net profit is the primary goal of every business focused on commercial activity. It is the source of further company’s development, and it is followed by all the stakeholders. Its relative size is the basis of the shareholders return through dividends. This paper studies the influence of several factors as the company size, financing structure or assets efficiency on the net profit for the companies with positive results. The data was analyzed for a period of 12 years, from 2009 until 2020. The sample consists in 3109 companies specialized in vegetal nutrition in the Romanian Agri-sector. The company size is defined by the turnover, the financing structure is represented by the level of equity, long-term debts and short-term debts and the return on assets reflects the assets efficiency. Each factor is influencing in a different manner the net profit of the companies. The hypothesis of the study refers to the relationship between net profit and the above factors. A correlation analyses was performed using SPSS software for determining the strength and directions between variables, combined with a descriptive analyses and reliability tests as Cronbach’s and F. The results show that there is a high positive correlation with equity, a moderate positive with turnover and short-term debts, low positive with long-term debts and negligible correlation with return on assets. The conclusion is that the shareholders behavior reflected in the dividend policy can have a significant influence on the relative size of the net profit.</p>
</abstract>

The net profit is the primary goal of every business focused on commercial activity. It is the source of further company’s development, and it is followed by all the stakeholders. Its relative size is the basis of the shareholders return through dividends. This paper studies the influence of several factors as the company size, financing structure or assets efficiency on the net profit for the companies with positive results. The data was analyzed for a period of 12 years, from 2009 until 2020. The sample consists in 3109 companies specialized in vegetal nutrition in the Romanian Agri-sector. The company size is defined by the turnover, the financing structure is represented by the level of equity, long-term debts and short-term debts and the return on assets reflects the assets efficiency. Each factor is influencing in a different manner the net profit of the companies. The hypothesis of the study refers to the relationship between net profit and the above factors. A correlation analyses was performed using SPSS software for determining the strength and directions between variables, combined with a descriptive analyses and reliability tests as Cronbach’s and F. The results show that there is a high positive correlation with equity, a moderate positive with turnover and short-term debts, low positive with long-term debts and negligible correlation with return on assets. The conclusion is that the shareholders behavior reflected in the dividend policy can have a significant influence on the relative size of the net profit.

The Influence of the Company Size, Financing Structure and Assets Efficiency on the Positive Net Result in the Agri-Business Sector

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution 4.0 International License.

The net profit is the primary goal of every business focused on commercial activity. It is the source of further company’s development, and it is followed by...

The Influence of the Company Size, Financing Structure and Assets Efficiency on the Positive Net Result in the Agri-Business Sector

Publié en ligne: 14 juil. 2023

Pages: 524 - 536

DOI: https://doi.org/10.2478/picbe-2023-0050

Mots clés
net profit, turnover, equity, short-term debts, long-term debts, return on assets

© 2023 Dumitru-Florin Moise, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Influence of the Company Size, Financing Structure and Assets Efficiency on the Positive Net Result in the Agri-Business Sector

Publié en ligne: 14 juil. 2023

Pages: 524 - 536

DOI: https://doi.org/10.2478/picbe-2023-0050

Mots clésnet profit, turnover, equity, short-term debts, long-term debts, return on assets

© 2023 Dumitru-Florin Moise, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Mots clés
net profit, turnover, equity, short-term debts, long-term debts, return on assets