Recent studies reveal that uncertainty is a problem for the profitability of companies in various sectors. The purpose of this study was to investigate the impact of uncertainty on the profitability of textile companies in the EU 27. A number of models were performed using the random effects estimator. The results indicate that the uncertainty variable WUI negatively and significantly affects the profitability of the textile industry in all models. In addition, the results show that while equity to total assets and cash flow to operating revenue have a positive effect, capital intensity and operating in Eastern Europe have a negative effect on profitability. Also, size, current ratio, operating revenue to stocks and inflation do not seem to have a significant impact on profitability.
In the global world where competition is increasing constantly, efficient use of resources is becoming more important for the textile industry. In this study, the efficiency scores and inefficiency effects of the textile industry in selected Eastern European countries were investigated using stochastic frontier analysis. The results indicate that age has a negative impact on inefficiency in the Czech Republic and Hungary. The current ratio decreases the inefficiency in Slovakia, Poland and Hungary, while time decreases that in Slovakia, the Czech Republic and Hungary.
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