Evaluating the competitiveness of non-financial corporations by modeling sales

Abstract

The objective of this paper is to assess the competitiveness of non financial business entities, which are defined by NACE Rev. 2 divi sion 26 as the Manufacture of computer, electronic and optica products, and by NACE Rev. 2 division 27 as the Manufacture of electrical equipment. Data were obtained from the Register of Financial Statements of the Ministry of Finance of the Slovak Re public and from the financial statements of the studied companies The survey sample consists of 138 non-financial corporations based on the amount of sales generated in the period 2016-2017 This paper is devoted to the issue of financial models in the evalu ation of non-financial corporations with the aim of increasing com petitiveness in the electrical engineering industry. An analytica view of competitiveness is provided based on the number of com petitors in the electrical engineering industry. Selected factors are used to model the volume of sales of non-financial corporations in this industry. The production function model is used to quantify the concentration measure expressing the growth of a company's market share. The competitiveness factor is determined for non-financial companies based on the multiple regression and produc tion function. The concentration rate is assessed through the Gin coefficient of concentration. It quantifies the growth of the compa ny's market share and hence its hierarchical position on the mar ket. By modeling the volume of revenue produced by each compa ny, through the competitiveness factor, the results of analyzes have shown which non-financial corporations in the electrical engi neering industry are the most competitive and least competitive.