Profitability determinants of fitness SMEs: Empirical evidence from Portugal using panel data

• Main Authors: Pedro Guedes de Carvalho, Zélia Serrasqueiro, Paulo Maças Nunes
• Format: Article
• Language: English
• Published: Academy of Economic Studies of Bucharest 2013-06-01
• Series: Amfiteatru Economic
• Subjects: financial constraints; human kinetics; performance; Portugal; service SMEs
• Online Access: http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=1210

Based on a sample of 182 small and medium-sized Portuguese fitness firms, using panel data models, this paper studies the determinants of profitability in Portuguese fitness SMEs. The empirical evidence indicates that: i) size, age, liquidity, long-term debt and government subsidies are determinants stimulating profitability in Portuguese fitness SMEs; ii) risk is a restrictive determinant of profitability in Portuguese fitness SMEs; and iii) growth opportunities, in the form of intangible assets, are neither a stimulating nor restrictive determinant of profitability in Portuguese fitness SMEs. The empirical evidence allows us to make important suggestions for political decision-makers and the owners/managers of small and medium-sized Portuguese fitness firms