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2021 - Volume 4 - Number 1

Influence of Firm-Specific Determinants on the Profitability of Companies in Agri-Food Sector in Bosnia and Herzegovina: Research Project

Dalila Ivković * dalila.ivkovic24@hotmail.com * ORCID: 0000-0003-4383-7022
International Burch University, Sarajevo, Faculty of Economics and Social Sciences, BOSNIA AND HERZEGOVINA

Ermin Cero * ermin.cero@ibu.edu.ba
International Burch University, Sarajevo, Faculty of Economics and Social Sciences, BOSNIA AND HERZEGOVINA

Open Journal for Research in Economics, 2021, 4(1), 31-38 * https://doi.org/10.32591/coas.ojre.0401.04031i
Received: 12 January 2021 ▪ Accepted: 30 April 2021 ▪ Published Online: 30 July 2021

LICENCE: Creative Commons Attribution 4.0 International License.

ARTICLE (Full Text - PDF)

ABSTRACT:
The main objective of the undertaken study is to examine the influence of firm-specific determinants on the profitability of companies in the agri-food sector (agricultural production and food processing) in Bosnia and Herzegovina (B&H). For this purpose, we examine the impact of factors that are considered as determinants of firm profitability such as size, age, liquidity, leverage, and growth. The impact of the specific characteristics of the companies is tested on profitability measured by return on assets (ROA) in the agricultural and food processing sector in B&H. The analysis is based on the collection of quantitative data published in the food financial annual reports of the listed agricultural and processing companies in B&H over a period of five years (2015-2019). A research model with crucial variables with five independent variables (size, age, liquidity, leverage, and growth rate) and one dependent variable (profitability) was developed based on the literature review. The study outcomes will give an insight into the firm-specific factors that are important in examining the profitability of companies in the agri-food sector in B&H. Furthermore, the results of this research will serve as a basis for further studies in which the number of variables observed will be extended. Moreover, the results are expected to be useful for the management of the company to direct business decisions towards improving the company’s profitability.

KEY WORDS: firm-specific determinants, profitability, agri-food sector, agricultural and food processing companies, Bosnia and Herzegovina.

CORRESPONDING AUTHOR:
Cero Ermin, International Burch University, Faculty of Economics and Social Science, Sarajevo, BOSNIA AND HERZEGOVINA. E-mail: ermin.cero@ibu.edu.ba.

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