Chapters authored
Impact of Short-Term Management on Portuguese and Spanish Firms’ Performance
An effective and efficient working capital management ensures companies a greater ability to survive in an increasingly competitive and challenging business world and therefore plays a key role in the manager’s operational and financial decisions. Thus, the main objective of this chapter is to show empirically the extent to which working capital management influences the measures of business performance evaluation. To achieve the proposed objective, the ROA, ROE, and Tobin’s Q were used as measures of performance. For this study, data from Portuguese and Spanish companies were used, which are listed on Euronext Lisbon and the Madrid Stock Exchange, respectively, resulting in a final sample of 106 companies. The methodology used to test the hypotheses formulated was dynamic panel data methodology (with GMM system) for a period between 2010 and 2016. The results obtained in this research show, in a general way, that there are significant differences in the determinants of performance depending on the samples used, whether they are the Spanish Sample or the Portuguese Sample.
Part of the book: Banking and Accounting Issues
Determinants of Banking Profitability in Portugal and Spain: Evidence with Panel Data
This article aims to study the determinants of banking performance in the countries of the Iberian Peninsula, Portugal and Spain. To achieve the proposed objective, the methodology of panel data was used, specifically the estimation method Generalized Method of Moments (GMM-system). An unbalanced panel of 267 banks was used, of which 122 belong to the Portuguese banking sector and 145 to the Spanish banking sector. Two variables were used as performance measures, the average return on total assets (ROAA) and the average return on equity (ROAE). The results show that bank profitability is generally influenced by internal variables, and not so much by sector-specific or macroeconomic variables. Therefore, the results suggest that management decisions are the ones that most influence performance. We conclude that bordering countries, despite having different economies, have very similar influences on bank profitability.
Part of the book: Banking and Accounting Issues