RESEARCH PAPER
SOURCES OF RETURN ON EQUITY IN ECONOMICALLY DIVERSIFIED AGRICULTURE OF THE EUROPEAN UNION COUNTRIES
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Szkoła Główna Gospodarstwa Wiejskiego
Submission date: 2018-09-11
Publication date: 2018-09-11
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2018;356(3):76-93
KEYWORDS
ABSTRACT
The study analysed sources of return on equity in countries with strong and
economically weak farms. The economic size used in FADN was used as the
breakdown criterion. In the group of countries where farms reached a relatively
small economic size, there were Bulgaria, Greece, Croatia (from 2013), Malta,
Lithuania, Poland, Romania and Slovenia. Farms with a high standard value of
production came from the Netherlands, Belgium, the Czech Republic, Denmark,
Germany and Slovakia. The studies used panel methods, and the model with
fixed effects was used to estimate model parameters. Factors that influenced the
return on equity in the group of weaker countries included asset productivity,
sales profitability (sales margin) and operating subsidies. In the group of countries
with economically stronger farms, the return on equity rate was positively
affected by the margin on sales and profitability of production measured by the
ratio of total production to total costs and property debt. Which confirms that
foreign capital can contribute to achieving positive effects from the perspective
of the return on equity.