Sales and profit growth and the effects of crises: comparative evidence from the recent crisis

Celeste Varum, Susana Silva and Abigail Ferreira

Global Business and Economics Review, 2014, vol. 16, issue 2, 214-229

Abstract: The global crisis has called to further reflection on the role of multinationals in host economies during crisis. The evidence on this matter is scarce. Using panel data analysis, this paper examines the link between foreign ownership, firm profit and turnover growth over 1996-2009 covering two economic downturns in particular. The empirical analysis covers not only previous periods of recession, of the early 2000s in Portugal, but also analyses the most recent recession. To our knowledge the paper is unique in this regard. We analyse the determinants of firm profit and turnover growth and investigate whether there are significant differences between domestic and foreign firms during and after two different economic downturns. After controlling for several firm and industry characteristics, we find no significant differences between domestic and foreign firms. However, foreign firms' profit growth seems to have been more severely affected in the second crises. Indeed, during the first crisis period, and for the group of foreign firms, the impact is negative but not significant.

Keywords: financial crisis; foreign ownership; foreign firms; domestic firms; sales growth; profit growth; global business; Portugal; multinationals; multinational corporations; MNCs; firm profit; turnover growth. (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=60192 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:16:y:2014:i:2:p:214-229

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker (informationadministrator5@inderscience.com).