Regression analysis of the impact of internal factors on return on assets: A case of meat processing enterprises in Serbia

Abstract

The aim of this paper is to identify and measure the impact of internal factors on the business success of meatprocessing enterprises expressed through profitability. Panel analysis was constructed for the sample which includes 24 enterprises in Serbia at the period from 2007 to 2016. The accounting rate of Return on assets(ROA), as a measure of productivity, was in function of the dependent variable, while the size of the enterprise,age, debt ratio, quick ratio, inventory, sale growth and capital turnover ratio were found as independentvariables. A regression model was constructed and indicated that most variables had a statistically significantinfluence on the dependent variable. This kind of results are very important for potential investors. They canhelp them to better understand impact of internal factors on profitability and make better decisions aboutinvestment in this sector.