Determinants of wine firms’ performance: the Iberian case using panel data

• DOI: https://doi.org/10.1108/IJAIM-10-2021-0203
• Published date: 07 April 2022
• Date: 07 April 2022
• Pages: 325-338
• Subject Matter: Accounting & finance,Accounting/accountancy,Accounting methods/systems
• Author: Elisabete Neves,António Dias,Miguel Ferreira,Carla Henriques

Determinants of wine firms’

performance: the Iberian case

using panel data

Elisabete Neves

Polytechnic of Coimbra, Coimbra Business School Research Centre|ISCAC,

Coimbra, Portugal and University of Tras-os Montes and Alto Douro|CETRAD,

Vila Real, Portugal

Ant

onio Dias

Department of DESG, School of Human and Social Sciences,

University of Tras-os-Montes and Alto Douro, Vila Real, Portugal

Miguel Ferreira

Escola de Ciencias Humanas e Sociais, Universidade de Tras-os-Montes e Alto Douro,

Vila Real, Portugal, and

Carla Henriques

Polytechnic of Coimbra, Coimbra Business School Research Centre|ISCAC,

Coimbra, Portugal

Abstract

Purpose –In the macroeconomic environment of the Iberian Peninsula, this paper aims to understand

which factors,intrinsic to management, affect the performance of wine companies.

Design/methodology/approach –The sample comprises 3,113 wine Iberian companies between 2011

and 2018. This study has used the panel data methodology, specifically the generalized methodof moments

system estimation method of Arellano and Bond (1991);Arellano and Bover (1995); and Blundell and Bond

(1998) to test the hypothesesproposed.

Findings –Using return on assets (ROA) and sales growth as measures of corporate performance, this

study’s results suggest that salesgrowth is the variable that has the most significant determining factors,

both specific to the company and given the macroeconomic environment. Investors and civil society well

understand the meaningof sales growth, namely, in a sector close to the final consumer. When using ROA as

a dependent variable,the results suggest that because it is a puremanagement variable, the manager tends to

be more concerned with maintaining adequate levels of economic profitability to ensure sustainability and

future solvency,without giving prominence to the macroeconomic environment.

Originality/value –To the best of the authors’knowledge, this is the first time that a study has been

carried out in the Iberian Peninsula on the wine industry using ROA and sales growth as measures of

corporate performance. This study shows that sales growth is a measure traditionally known to external

stakeholders,and to that extent, its determining factors are the variables that these players most value in the

market.

Keywords Performance, Iberian companies, Wine industry, GMM system

Paper type Research paper

This work is supported by national funds, through the FCT –Portuguese Foundation for Science and

Technology under the project UIDB/04011/2020. This work was also supported by FCT through

projects UID/MULTI/00308/2020 and UIDB/05037/2020.

Determinants

of wine firms’

performance

325

Received4 October 2021

Revised16 January 2022

Accepted21 February 2022

InternationalJournal of

Accounting& Information

Management

Vol.30 No. 3, 2022

pp. 325-338

© Emerald Publishing Limited

1834-7649

DOI 10.1108/IJAIM-10-2021-0203

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/1834-7649.htm