Original scientific paper
Financial Success of Subsidized Companies by Size in the Period 2005-2015
Anđelka Buneta
orcid.org/0000-0002-5578-3810
Abstract
The interdependence of state subsidies and financial results of companies is still under-research category. Therefore, the subject of research in this paper is to examine the impact of state subsidies on the financial performance of companies in the Republic of Croatia in the period from 2005 to 2015 according to size. In previous research, the variable of company size is often the focus of scientific research, as well as performance (Berger and Udell., 1995; Boeri and Bellmann, 1995), but research models mainly refer to the survival of companies in relation to size. In this paper, the intention
is to investigate the impact of state subsidies on the performance of companies according to their size, and the economic measures of the performance of the observed companies were selected.
The sample for estimating the parameters of the linear regression consists mainly of companies that received at least one incentive from the state in the observed period and submitted annual financial reports for all years covered by the analysis (balanced panel). For the control group, a stratified sample of companies was selected that are like companies that received state subsidies in terms of size of assets, number of employees, activity, and size. In this way, it will be possible to assess whether there are significant impacts on the performance of subsidized observed companies compared
to non-subsidized companies.The research showed that subsidies had a relatively significant impact on all companies, but with different intensity.
Keywords
state subsidies; financial performance of the business; size of enterprise
Hrčak ID:
286117
URI
Publication date:
31.7.2022.
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