Financial performance of selected firms in the Czech Republic

Abstract

This paper examines the impact of firm specific factors on company financial performance of 75 companies in rubber and plastic industry in the Czech Republic over a four year period from 2005 to 2008. Pooled and panel regression models are used to analyze the data. Using return on assets as the dependent variable, it was established that the size, age, debt ratio, and inventory having significant negative effects on financial performance of firms. At the same time sales growth, physical capital intensity and capital turnover reflect a positive impact on financial performance of firms.