The Effect of Financial Factors and Firm Size on the Profitability of Greek Private Healthcare Organizations in Times of Economic Crisis
European Journal of Economics, Finance and Administrative Sciences, 95, 118-129.
12 Pages Posted: 26 Feb 2018
Date Written: August 1, 2017
The purpose of this paper is to identify the critical factors currently affecting the financial performance of the private healthcare organizations in Greece, and also discussing the impact of the economic crisis on them. For this purpose, we analyzed financial data from a sample consisted of 79 healthcare organizations for a 5-year period that begins in 2010 and ends in 2014. The econometric results of the research showed that the recent economic crisis has led to a differentiation of some key financial ratios between smaller and larger healthcare organizations. Most notably, the former seem to achieve increased profitability than the latter. Our findings also suggest that the financial performance of healthcare organizations is influenced positively by the current liquidity and the managerial efficiency of the firms, while it is influenced negatively by the financial leverage.
Keywords: healthcare organizations; financial performance; panel data; Greece
Suggested Citation: Suggested Citation