University of Twente Student Theses


The financial performance of companies active in the Dutch liquor industry: a case study

Masselink, J.G.M. (2021) The financial performance of companies active in the Dutch liquor industry: a case study.

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Abstract:This paper examines the financial performance of firms active in the Dutch liquor industry for the period 2017 and 2018. Various firm characteristics were examined to test whether these characteristics can lead to superior financial performance. Financial performance is in the descriptive multiple-case study measured by both individual performance ratios and the Zmijewski model, which is a score based on the ROA, the current ratio and the debt ratio. In the PLS regression analysis, financial performance is measured by the Zmijewski model. The Zmijewski model is chosen as a model for financial performance because it is an accurate and adequate predictor of financial performance. Besides, it takes into account both the return and risk indicators of financial performance. The descriptive multiple-case study and a PLS regression analysis of 12 competitors of Company X examine whether certain firm characteristics can explain superior financial performance. In the first stage of extensive literature search, it was found that synergy, family-ownership, managerial ownership, foreign ownership, gender diversity and national diversity all increase the financial performance. However, this can depend on the industry. The results of this research in the Dutch liquor industry indicate that an intra-business synergy leads to significant better financial results than performing one activity does. For the various ownership structures, the hypotheses could not be accepted. Furthermore, both gender diversity and national diversity significantly increase financial performance. But amongst other limitations, the COVID-19 pandemic can change these results. Therefore, it is suggested for future research to perform this research again to see whether certain firm characteristics are more resistant to a pandemic and the other limitations mentioned in this paper.
Item Type:Essay (Master)
Unknown organization, Beuningen, Nederland
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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