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Preliminary communication

https://doi.org/10.51650/ezrvs.18.1-2.2

Factors That Affect Financial Stability Of Listed Firms – Case Of Croatia

Tomislava Pavić Kramarić orcid id orcid.org/0000-0002-0974-4423 ; Sveučilište u Splitu, Sveučilišni odjel za forenzične znanosti, Split, Republika Hrvatska *
Marko Miletić orcid id orcid.org/0000-0002-6955-3047 ; Sveučilište u Splitu, Sveučilišni odjel za stručne studije, Split, Republika Hrvatska

* Corresponding author.


Full text: croatian pdf 141 Kb

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Abstract

This paper explores the factors affecting the financial stability of publicly traded companies. The sample includes non-financial companies listed on the prime and official markets of the Zagreb Stock Exchange from 2018 to 2022. In order to conduct the analysis, a variety of firm-specific, industry-specific and macroeconomic factors were utilized, encompassing company size measured with sales, liquidity expressed with the quick ratio, leverage, earnings per share, Covid-19 dummy variable and inflation. Additionally, financial stability was measured using a variant of the Z-score indicator. The results of the analysis conducted using Arellano-Bond dynamic panel model reveal that variables that are statistically significant in explaining financial stability are size, liquidity, and earnings per share with all three having positive influence on the financial stability of Croatian listed non-financial companies.

Keywords

financial stability; listed firms; Croatia.

Hrčak ID:

319652

URI

https://hrcak.srce.hr/319652

Publication date:

22.7.2024.

Article data in other languages: croatian

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