Panel analysis reveals financial liquidity, debt structure, and investment boost return on assets in Greek wineries, indicating strategic financing outweighs operational age.
Key Points
To examine the balance sheet structure and operational characteristics that determine firm performance and profitability within the Greek wine industry.
Analyzed financial panel data from 67 Greek wineries spanning 2013 to 2024 using return on assets as the core profitability metric.
Modeled internal determinants—liquidity, debt composition, working capital, capital expenditure, firm size, and age—using pooled ordinary least squares and random effects regressions.
Applied a one-year lag to financing and investment variables to capture delayed operational impacts.
Liquidity, working capital management, investment activity, and both short- and long-term debt significantly improve firm return on assets.
Long-term debt exerts a stronger positive impact on profitability than short-term debt, emphasizing the role of strategic long-term financing.
Firm size correlates negatively with performance, indicating diseconomies of scale or coordination difficulties in larger wineries, while operational age does not significantly drive profitability.