What factors can explain the performance of energy companies in Portugal? Panel data evidence
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 3 August 2021
Issue publication date: 14 February 2023
Abstract
Purpose
This paper aims to analyze the determinants of Portuguese energy companies' performance.
Design/methodology/approach
To achieve our objective, we have used data from 457 Portuguese energy companies, in the period between 2011 and 2018. Three dependent variables were tested using panel data, through the generalized method of moments (GMM) estimation method.
Findings
The results point out that the determinants of companies' performance change according to how different stakeholders appreciate corporate performance. In general, shareholders are concerned with maintaining their levels of profitability over time as well as with the company's market image. Managers are centered on maintaining solid margins on EBITDA through good management of cash flow, leverage and current assets. For the rest of the stakeholders, including global society, debt and investments in tangible fixed assets reduce profitability while investments in immaterial assets help to create value and performance for energy companies.
Originality/value
As far as the authors are aware, this is the first time that a study has been carried out in the Portuguese energy sector using the GMM-system model for three different stakeholders' views of corporate performance determinants.
Keywords
Acknowledgements
This work is supported by national funds, through the FCT – Portuguese Foundation for Science and Technology under the project UIDB/04011/2020 and the project UIDB/04928/2020.
Citation
Neves, M.E.D., Baptista, L., Dias, A.G. and Lisboa, I. (2023), "What factors can explain the performance of energy companies in Portugal? Panel data evidence", International Journal of Productivity and Performance Management, Vol. 72 No. 3, pp. 730-752. https://doi.org/10.1108/IJPPM-01-2021-0057
Publisher
:Emerald Publishing Limited
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