Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies
The study aims to examine the impact of risk factors of Ukrainian advertising and marketing companies on their financial performance (ROA and ROE). The study was conducted using ordinary least squares regression analysis based on an examination of the activities of 435 companies in 2022. The total n...
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| Format: | Article |
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LLC "CPC "Business Perspectives"
2024-11-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21098/IMFI_2024_04_Zavalii.pdf |
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| author | Tetiana Zavalii Serhii Lehenchuk Nina Poyda-Nosyk Yana Ishchenko Oleksandr Hrabchuk |
| author_facet | Tetiana Zavalii Serhii Lehenchuk Nina Poyda-Nosyk Yana Ishchenko Oleksandr Hrabchuk |
| author_sort | Tetiana Zavalii |
| collection | DOAJ |
| description | The study aims to examine the impact of risk factors of Ukrainian advertising and marketing companies on their financial performance (ROA and ROE). The study was conducted using ordinary least squares regression analysis based on an examination of the activities of 435 companies in 2022. The total number of risk factors (Risk Total) and the ten most common risk factors (10 fixed risk factors) associated with the activities of Ukrainian advertising and marketing companies, calculated using the YouControl database, were selected as independent variables. 10 fixed risk factors were interpreted as dummy variables, which allowed incorporating qualitative information about risk factors of Ukrainian advertising and marketing companies into regression analysis models. Control variables (company age, company size, financial leverage, population at the place of company registration, and total solvency ratio) were added to enhance the determination level of the models. Of these, the statistically significant ones were Company size, which increases ROA and ROE; Financial leverage, which increases ROE; and Company age, which decreases ROE. Of the 11 independent variables that characterized companies’ risk factors, only three were confirmed to significantly impact financial performance indicators (risk factor “Location in the housing stock” reduces ROA and ROE; risk factor “Frequent institutional changes” increases ROA; risk factor “Found match by full name with a politically exposed person” reduces ROE). |
| format | Article |
| id | doaj-art-2f14c144de8b4146a6ba506e3b3e1869 |
| institution | Kabale University |
| issn | 1810-4967 1812-9358 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj-art-2f14c144de8b4146a6ba506e3b3e18692025-02-03T12:00:11ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582024-11-0121434936010.21511/imfi.21(4).2024.2821098Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companiesTetiana Zavalii0https://orcid.org/0000-0002-6315-5646Serhii Lehenchuk1https://orcid.org/0000-0002-3975-1210Nina Poyda-Nosyk2https://orcid.org/0000-0002-5378-8028Yana Ishchenko3https://orcid.org/0000-0002-6819-5997Oleksandr Hrabchuk4https://orcid.org/0000-0001-8066-6547Associated Professor of the Department of Management, Business and Marketing Technologies, Zhytomyr Polytechnic State University, UkraineHead of the Department of Information Systems in Management and Accounting, Zhytomyr Polytechnic State University, UkraineProfessor of the Accounting and Auditing Department, Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education, UkraineAssociated Professor of the Department of Accounting and Taxation, Vinnytsia National Agrarian University, UkraineAssociated Professor of the Department of Law and Law Enforcement, Zhytomyr Polytechnic State University, UkraineThe study aims to examine the impact of risk factors of Ukrainian advertising and marketing companies on their financial performance (ROA and ROE). The study was conducted using ordinary least squares regression analysis based on an examination of the activities of 435 companies in 2022. The total number of risk factors (Risk Total) and the ten most common risk factors (10 fixed risk factors) associated with the activities of Ukrainian advertising and marketing companies, calculated using the YouControl database, were selected as independent variables. 10 fixed risk factors were interpreted as dummy variables, which allowed incorporating qualitative information about risk factors of Ukrainian advertising and marketing companies into regression analysis models. Control variables (company age, company size, financial leverage, population at the place of company registration, and total solvency ratio) were added to enhance the determination level of the models. Of these, the statistically significant ones were Company size, which increases ROA and ROE; Financial leverage, which increases ROE; and Company age, which decreases ROE. Of the 11 independent variables that characterized companies’ risk factors, only three were confirmed to significantly impact financial performance indicators (risk factor “Location in the housing stock” reduces ROA and ROE; risk factor “Frequent institutional changes” increases ROA; risk factor “Found match by full name with a politically exposed person” reduces ROE).https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21098/IMFI_2024_04_Zavalii.pdfadvertising and marketing companiesfinancial performancerisk factorsROAROEUkraine |
| spellingShingle | Tetiana Zavalii Serhii Lehenchuk Nina Poyda-Nosyk Yana Ishchenko Oleksandr Hrabchuk Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies Investment Management & Financial Innovations advertising and marketing companies financial performance risk factors ROA ROE Ukraine |
| title | Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies |
| title_full | Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies |
| title_fullStr | Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies |
| title_full_unstemmed | Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies |
| title_short | Nexus between risk factors and financial performance: The case of Ukrainian advertising and marketing companies |
| title_sort | nexus between risk factors and financial performance the case of ukrainian advertising and marketing companies |
| topic | advertising and marketing companies financial performance risk factors ROA ROE Ukraine |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21098/IMFI_2024_04_Zavalii.pdf |
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