Financial-Economic Analysis of Cultural Companies in Small and Medium-Sized Cities in Spain

Francisca Cea-D’Ancona, Antonia Sáez-Cala and Antonio Palacios
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Francisca Cea-D’Ancona: Department of Applied Economics, Autonoma University of Madrid, 28049 Madrid, Spain
Antonia Sáez-Cala: Departamento de Estructura Económica y Economía del Desarrollo, Facultad de Ciencias Económicas y Empresariales, Autonoma University of Madrid, 28049 Madrid, Spain
Antonio Palacios: Department of Geography, Autonoma University of Madrid, 28049 Madrid, Spain

Sustainability, 2022, vol. 14, issue 11, 1-25

Abstract: Cultural enterprises are today an important component in the development processes of many territories. In urban centers—particularly those located within metropolitan areas—cultural companies constitute a main element of the economy, due to their ability to activate new production chains and revitalize local regions. The objective of this work is to examine the traditional cultural sector (subsectors 18, 59, 60, 90 and 91 of NACE-09) of small and medium-sized cities from the perspective of the financial conditions of the particular companies involved. The use of multivariate techniques for reducing dimensions enables the specification of key factors within the financial structures of companies to assemble homogeneous groups of firms, in order to then determine which factors influence their profitability in both intra- and extra-metropolitan contexts. The results of the applied method indicate heterogeneity in the financial situations of these cultural industries in the activities and cities analyzed. Differences are marked in the financial profiles of cultural companies in intra-metropolitan environments in terms of business profitability, debt quality, financial stability, investment capacity, and costs of personnel. On the other hand, the economic-financial structures of companies in extra-metropolitan cities are determined through efficiency in the allocation of economic-financial resources, profit margins, and investment capacity. Belonging to one cultural sub-sector or another and a particular location within an intra- or extra-metropolitan urban environment also play some part in a company’s economic and financial structure. Hence there is a need to differentiate the design of intervention strategies (instruments) aimed at promoting the system/environment to which the company belongs as well as the company itself.

Keywords: cultural industries; financial-economic analysis; small and medium cities; multivariate techniques; Spain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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