Is There Relationship between Firm Size and Profitability?

Darko Tipuric
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Darko Tipuric: Graduate School of Economics and Business, University of Zagreb, Croatia

Zagreb International Review of Economics and Business, 2002, vol. 5, issue Special Conference Issue, 139-154

Abstract: This paper presents author’s research findings into the relationship between firm size and profitability, without an industry effect analysis. The findings have indicated the following: (1) marginally, profit is related to firm size i.e. the larger the firm the larger its profits (the reverse is also true); (2) small Croatian firms have profits per employee that are multiples of those earned by medium-sized and large firms, (3) there is a correlation between the increase in firm size (measured by total revenues) and increase in profits, and (4) there is a weak correlation between increase in size (measured by the number of employees) and decrease in profits

Keywords: firm size; revenue; profits; ANOVA (search for similar items in EconPapers)
JEL-codes: L11 M31 (search for similar items in EconPapers)
Date: 2002
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