Background: Sales revenue growth represents one of the key indicators of firm success and competitiveness, particularly in the agricultural sector, which is characterised by high price fluctuations, climate-related risks, and pronounced seasonal variations. Although numerous external factors affect the performance of firms in the agrarian sector, less is known about the extent to which internal financial and strategic factors contribute to the dynamics of sales growth. Purpose: The purpose of this study is to examine how internal factors - profitability, liquidity, leverage, firm size, and presence in foreign markets - affect sales revenue growth of agricultural enterprises in Serbia. Study design/methodology/approach: The empirical analysis is based on panel regression techniques applied to a sample of 104 enterprises over the period from 2022 to 2024. Pooled OLS, fixed effects, and random effects models were employed, along with relevant diagnostic tests, including correlation analysis, VIF diagnostics, the White test for heteroskedasticity, the Wooldridge test for autocorrelation, and the Hausman test for selecting the optimal model specification. Findings/conclusions: The results indicate that presence in foreign markets has a positive and statistically significant effect on sales revenue growth, confirming the importance of internationalisation as a strategic growth factor. In addition, liquidity emerges as a significant and positive determinant of sales growth, suggesting that financial flexibility plays an important role in ensuring business stability and continuity in the agricultural sector. In contrast, profitability (ROA), leverage, and firm size do not exhibit a statistically significant impact on sales growth over the short observation period. Limitations/future research: The main limitations of the study relate to the short time dimension of the panel (T = 3), which restricts the identification of long-term effects, as well as difficulties in incorporating key external growth determinants into the model, such as climatic conditions, government subsidies, and input price volatility. Future research should cover a longer time horizon and integrate external factors to provide a more comprehensive understanding of growth determinants in the agricultural sector.
Peštović et al. (Thu,) studied this question.