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ArticleBifröst University>Rafræn tímarit>

Please use this identifier to cite or link to this item: http://hdl.handle.net/1946/7638

Title

Does the size matter? : the relationship between size and porfitability of Icelandic firms

Published
2007
Abstracts
  • is

    Stjórnendur, og einnig hluthafar, vilja gjarnan sjá fyrirtæki sín vaxa og verða stór, helst þau stærstu í atvinnugreininni. Þetta viðhorf er meðal annars byggt á þeirri forsendu að stór fyrirtæki hafa ýmsa yfirburði yfir smærri keppinauta sína. Þau geta komið við stærðar- og breiddarhagkvæmni og sérhæfingu og hafa sterkari samningsstöðu gagnvart birgjum og lánastofnunum. Stór fyrirtæki ættu því að vera arðsamari en lítil.
    Í rannsókninni er samband stærðar og arðsemi skoðuð hjá 250 íslenskum fyrirtækjum yfir 5 ára tímabil. Fyrirtæki sem stunda fiskveiðar og vinnslu eru skoðuð sérstaklega og einnig bankar og verkfræðistofur. Stærð er metin á grundvelli veltu og heildareigna. Arðsemi er metin sem arðsemi heildareigna (ROA), arðsemi fjárbindingar (ROC) og arðsemi eigin fjár (ROE). Niðurstöður eru ræddar og skýrðar með tilvísun í kenningar
    um umboðsvandann, kenningar um stefnumótun og stofnanakenningar.

  • Shareholders, and managers particularly, like to see their business grow and become big, preferably the biggest in their industry. The assumption is that large firms have many
    advantages over their smaller rivals. Large firms can benefit from economies of scale, scope and from specialization and they have stronger bargaining power. Consequently, bigger firms must be more profitable than smaller firms.
    This study investigates the relationship between profitability and size among Icelandic firms. 250 Icelandic firms are analysed over a 5 year period, particularly looking at fish and fish processing firms, banks and civil engineer consulting firms. The size of firms is measured as turnover and total assets and ranges from the largest in each industry to very small ones. Profitability is measured as return on assets (ROA), return on capital invested (ROC) and return on equity (ROE). The findings are discussed with reference to the principal agent theory, strategic theories and institutional theory. Several explanations are offered.

Appeared in

Bifröst Journal of Social Science / Tímarit um félagsvísindi. 2007, 1(1) : 43-55

ISSN

1670-7796

Comments
is

Vinnugrein (Working paper)

Issued Date
01/03/2011


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