Abstract
Principal component analysis is integrated with cluster analysis to assess the performance of two different branches of the greek manufacturing sector, i.e. the pharmaceutical and the olive and seed oil industries. The factors of size, profitability and financial status are extracted by applying the principal component analysis. Cluster analysis is then applied to form homogenous groups of firms corresponding to a set of similar characteristics and patterns of behaviour. Common patterns that influence corporate performance in the period 1981–91 are established and compared between these two sectors. Results show that a good financial status is a sufficient but not a necessary condition for a good profitability record in the case of both sectors. It also appears that size affects the profitability of a greek pharmaceutical firm whereas there is no evidence of a clear relationship between these two factors in the case of the olive and seed oil industry. The results are interpreted in the framework of the relevant Greek state and European Union policies and are inagreement to other empirical research findings.
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Caloghirou, Y., Mourelatos, A., Papagiannakis, L. (1998). Multivariate Analysis for the Assessment of Corporate Performance: The Case of Greece. In: Zopounidis, C. (eds) Operational Tools in the Management of Financial Risks. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5495-0_5
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DOI: https://doi.org/10.1007/978-1-4615-5495-0_5
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