Printer Friendly

Investment perspectives during the crisis case study of Northern Greece: survey findings.

Abstract

The study presents the main results of our primary research on the investment perspectives of the firms of the Northern Greece. Based on the Greek Population Census 2011, we allotted 300 questionnaires to the regional units of the Northern Greece and then, we distributed them to the biggest -in terms of sales- firms of each regional unit. Our research was conducted face-to-face and via e-mail with the assistance of a research group of the Department of Accounting and Finance of the University of Macedonia during the time period December 2012 - January 2013.

Greece faces a severe economic depression and investments are considered to contribute to economic growth. Thus, we examine whether the firms intend to make any investments. Furthermore, we attempt to shed some light on the impact of the economic crisis on the firms and on the firms' reaction, i.e., exports, advertisement etc. The majority of the respondents claimed that was affected in a negative way by the crisis. Moreover, approximately 68 per cent of the respondents neither made an investment during the first half of 2012 nor planned to make an investment in the following six months. Firms located near the Greek borders and also firms with more employees have been less affected by the crisis and are willing more to make new investments. Finally, the vast majority of the respondents are optimistic about the future of their business, even though they believe that the Greek economy will recover at least after three years.

Keywords : Investment perspective; Northern Greece; Severe economic, depression; Employee are less affected. JEL Classification : C42; C82; E22; F34; 052

Introduction

Global economy faces the so-called Great Recession that started after the bursting of the US housing bubble in 2007. This crisis affected the European economy more than expected. In recent times, Europe faces a sovereign debt crisis. According to Reinhart and Rogoff (1), "external debt crises involve outright default on payment of debt obligations incurred under foreign legal jurisdiction, including nonpayment, repudiation, or the restructuring of debt into terms less favorable to the lender than in the original contract". Crises have an impact on economies. This can merely be explained by the fact that crises lead to heightened uncertainty (Inklaar and Yang, (2)). As Bloom (3) points out, investment (and hiring) rates drop after the bursting of a crisis since firms delay their investments because the "uncertainty increases the real-option value to waiting".

However, investments are considered to contribute to economic growth. In other words, investments can have a positive impact on economy restraining the crisis effects. Therefore, we examine the investment perspectives of the Greek firms during the Greek debt crisis. Specifically, we focus on North Greece concerning its adjacency to the Balkan emerging markets.

European Sovereign-Debt Crisis : Snapshot

The causes that contributed to.the Euro zone crisis differ among the countries. However, it is being accepted that the root of the debt problem is found at the structure and the functioning of the European Monetary Union-EMU (Overbeek, (4)).

The crisis was triggered by Greece, a country that represents nearly the two per cent of the Euro zone and the EU-27 GDP3, when in October 2009 the newly elected government announced the estimation that the 2009 budget deficit would have been 12.7 per cent of GDP, instead of 6 per cent of GDP as the previous-government had estimated (Lane) (4). Afterwards, Greece was accused of using "complex financial instruments" in order to "obscure debt levels" (Nelson, et. al., (5)). As a result, credit rating agencies downgraded Greece's credit rating and investors distrusted the country's ability to serve its debt obligations. Consequently, investors started to demand higher risk premia for buying Greek government bonds. The spread between the 10-year Greek government bond and the 10-year German bond (bund) was about 600 basis points in May 2010, when Greece agreed on a 110 billion-euro rescue package from the International Monetary Fund (IMF), the European Central Bank (ECB), and the European Commission *.

The Greek crisis led investors to reassess their confidence in other European countries with large public debts. Shortly (6), in November 2010 Ireland requested financial support. In December, the Irish government accepted an 85 billion-euro financial assistance package. (7) Portugal was also cut off from market financing. Thus, in April 2011 the country requested the activation of an aid mechanism. Portugal received a 78 billion-euro rescue package. Meanwhile, Spanish and Italian spreads were rising. In June 2012, Spain requested financial assistance to support the recapitalization of its financial institutions. The Euro zone agreed to lend Spain up to 100 billion euros. In June 2012, Cyprus became the fifth country that asked for bailout assistance.

Prelude

In this paper, we attempt to shed light on the impact of the Greek debt crisis on the firms and particularly, on whether the firms intend to make any investments. Since the bursting of the crisis is fairly recent, the existing relative literature is limited, as limited are the articles that examine the U.S. crisis effects on investments. Duchin et. al., (6) examine the effect of the U.S. financial crisis on corporate investment of U.S. public-listed firms. They find that corporate investment declined after the bursting of the crisis during the year July 1, 2007 to June 30, 2008 and also, during the period July 1, 2008 to March 31, 2009.

Campello, et. al., (7) survey 1,050 chief financial officers (CFOs) in 39 countries in December 2008. They conclude that financially constrained firms planned to reduce more investments than unconstrained firms during the crisis (1). Campello, et. al., (8) conducted two surveys in early 2009--the first conducted in the first quarter of 2009 and the second

in the second quarter of 2009, each representing approximately 600 CFOs from twenty countries in Europe and North America. They conclude that, during the U.S. crisis, European firms used credit lines in order to find the required liquidity for their investments. Akbar et al., (9) use a sample of 4,973 private companies--i.e., not traded on a stock exchange--in the U.K. to examine their investment behavior during the financial crisis of 2007-2009. They find that during this period both performance and investment of the considered firms declined.

There are articles that examine the impact of the U.S. crisis on firms' investments on innovation. For example, Filippetti and Archibugi (10) using the Innobarometer 2009--a survey conducted during April 2009 in the 27 Member States of the European Union, Norway and Switzerland--conclude that the crisis effect on innovation varies across the considered countries. As far as the European debt crisis effect on investments is concerned, the literature is more restricted as already mentioned. Mursaleen Shiraj and Islam" tried in an early stage to identify the impact of the Euro zone crisis on the economy of Bangladesh.

The United Nations Conference on Trade and Development (UNCTAD) in its World Investment Report: 2010 expressed the concern that the Greek debt crisis could affect the economies of the South Eastern Europe (UNCTAD, 2010 (12)). The UNCTAD in its World Investment Report : 2012 makes a specific reference to the Foreign Direct Investments (FDIs) in Greece, Italy, Portugal and Spain (UNCTAD, 2012 (13)). To our knowledge, there is no other article examining the consequences of the European sovereign-debt crisis on investments.

Lazaridis and Pavlidou (14) examined the investment perspectives of the firms of the Republic of Cyprus during the debt crisis. They conducted a primary research during the time period December 2012-January 2013 in which responded 127 firms and they concluded that for the majority of the respondents the crisis had a negative impact. Almost 76 per cent of the respondents did not plan to make an investment in the following semester and approximately 72 per cent of the respondents did not plan or want to expand into foreign markets in order to address the crisis. However, the vast majority of the respondents were optimistic about the future of their business.

Methodology Used

The main objective of this paper is to examine the investment perspectives in Northern Greece during the financial crisis. Based on the Greek Population Census 2011 conducted by the Hellenic Statistical Authority we allotted 300 questionnaires to the regional units of the N. Greece and then, we distributed them to the biggest--in terms of sales--firms of each regional unit. Our research was conducted face-to-face and via e-mail with the assistance of a research group of the Department of Accounting and Finance of the University of Macedonia during the time period December 2012--January 2013. The total number of firms that answered our questionnaire was 203. In other words, the response rate is 67.6 per cent, which is considered especially satisfactory. (See Table 1)

In this section we present the results of our survey. We divided our questions in three Parts:

a) the impact of the economic crisis on the firms,

b) the impact of the economic crisis on investments and

c) the future expectations of the respondents.

Impact of Economic Crisis on Investment

The vast majority (84.7 per cent) of the survey respondents stated that the economic crisis has a negative impact on their business, while only a very small percentage (8.4 per cent) reported that the crisis has not affected their business. This negative impact is also confirmed by the results presented in Tables 2 and 3. We observe that in the aggregate, nearly 60 per cent of the respondents claimed that the level of Sales declined both in the year 2011 compared to 2010 and in the second quarter of 2012 compared to the second quarter of 2011-60.2 per cent and 59.1 per cent respectively. Correspondingly, a negative percentage change in Net Profits was reported by 63.7 per cent of the respondents in Q4 2011 and by 64 per cent of the respondents in Q2 2012. Nevertheless, we must underscore the encouraging fact that there were firms in Northern Greece that, despite the crisis, managed to increase their profits at a rate of approximately 20 per cent in both periods under consideration.

Concerning the percentage change in the number of employees, one in two firms reports no change, while a negative change is reported by the 37.5 per cent of the firms for the full-year 2011 and by the 33.9 per cent of the firms for the half-year 2012.

Furthermore, as displayed in Table 5, in the coming months 56.2 per cent of the considered firms are not going to undertake recruitment, 24.4 per cent did not know and 19.4 per cent intend to hire new employees but mainly up to four people.

Economic Crisis and Investment

Examining the results of our survey, we conclude that the crisis has affected directly the firms' investment decisions. Specifically, 67.8 per cent of the respondents neither made an investment during the first half of 2012 nor plan to make an investment in the next six months (68.2 per cent). On the other hand, 32.2 per cent of the considered firms have made an investment in the first half of 2012 and only 31.8 per cent of the firms are planning to make new investments in the next six months.

Moreover, one in two firms is not willing to expand into foreign markets (50.8 per cent). Only 23.6 per cent of the respondents already have presence in other markets (such as in the Balkans, Russia, Middle East) and 25.6 per cent responded that want or plan to expand into other markets in the foreseeable future.

In addition, we asked the firms under consideration whether promotion (advertising, special offers, etc.) of their business will have a positive effect on sales; 58.7 per cent agree, 7 per cent disagree and 34.2 per cent do not know. Besides, 48.2 per cent of the respondents already promote or plan to promote their business in order to address the crisis, 37.7 per cent either don't promote or don't plan to promote their business and 14.5 per cent have not taken this issue under consideration.

Finally, we examined the impact of the crisis on the firms' relationship with their banks. Due to the outbreak of the crisis, this relationship deteriorated for the 47.4 per cent of the Northern Greek firms under consideration, improved only for the 4.2 per cent and remained stable for the 43.2 per cent of the firms. The rest 5.2 per cent of the firms reported that they do not collaborate with a bank.

Future expectations of Northern Greek Entrepreneurs

We attempt to explore the future expectations of the Northern Greek entrepreneurs. Particularly, we asked them when, in their point of view, the Greek economy will recover (Table 6). The majority (61.4 per cent) replied that it will take at least three years, 10.3 per cent of the respondents think that it will take less than three years whereas 28.4 per cent of the respondents claimed that they cannot determine the exact time.

Nevertheless, it is encouraging that 80.4 per cent of the respondents are optimistic about the future of their business (Table 7) although they do not express the same level of optimism about the future of their industry sector. Namely, about the outlook of their sector, 38.5 per cent of the respondents think that it is positive, 39.1 per cent think that it is negative, 13 per cent think that it is stable and the rest are unable to make an estimate.

Finally, in order to tackle the crisis, 39.2 per cent of the considered firms intend to pursue a defensive strategy, 32.5 per cent will pursue an aggressive strategy, 6.2 per cent will follow another strategy and the rest have not formulated a strategy yet.

Survey Research Findings

Subsequently, we proceeded to a comparative analysis of our data. From the existing combinations between the asked questions in our survey, we found interesting that there is diversity in the responses based on two criteria. These criteria are the proximity of the Firms to the Greek borders and the number of the employees.

Proximity to Borders

We examine the variation in the responses depending on whether the firms' head office is located in a border regional unit or not. We divided the firms under consideration into two groups. Group A consists of the firms which head office is in a border regional unit and Group B consists of the rest of the firms.

The increase in sales volume during the first half of 2012 compared to the previous half was greater in Group A firms in comparison to Group B firms. Specifically, 37.3 percent of the firms in Group A reported increased sales versus 24.5 percent of the firms in Group B. Indeed, chi-square test indicates that this difference is statistically significant.

Another statistically significant difference between the two groups lies in the probability of making new investments in the next six months. From the firms in Group A, 52.5 per cent replied that they intend to make an investment. On the contrary, 76.4 percent of the firms in Group B are not planning to make new investments. It seems that the business environment is more favorable in areas near the Greek border; this conclusion needs further examination.

Number of employees

We examine the variation in the responses based on the number of employees reported by the respondents. From the following tables we conclude that there is statistically significant difference in the responses depending on this criterion. Table 10 demonstrates that firms that employ more than 50 people reported greater increase in Sale volume during the crisis.

Specifically, 41.6 per cent of the firms that employ 50-99 people and 57.9 per cent of the firms that employ 100 or more people reported a positive change in Sales volume during the first half of 2012. However, the Sales volume increased only in the 14.6 per cent 30.5 per cent and 22.6 per cent of the firms that employ 1-4, 5-19 and 20-49 people, respectively.

Moreover, as the number of employees increases, the percentage of the firms that either made investments during the first half of 2012 or are planning to make investments in the next semester increases, too (Tables 11 and 12).

Table 13 displays results of significant interest. In particular, firms that employ 50 or more people have already expanded into foreign markets at a rate of 48 per cent--54.5 per cent. The firms that have from 5 to 49 employees plan or want to expand into foreign markets at a rate of 34.5 per cent--40.6 per cent, while 82 per cent of the firms that have up to four employees do not plan or want to expand into foreign markets. This diversity in the responses is statistically significant. To conclude, firms with more employees are more likely to undertake the risk of an expansion into a foreign market.

Conclusions

In what follows, we present the results of a recent survey to the biggest--in terms of sales-firms in Northern Greece that was conducted face-to-face and via e-mail with the assistance of a research group of the Dept, of Accounting and Finance of the University of Macedonia during the time period December 2012-January 2013.

We focused on whether the firms intended to make any investments during the financial crisis. More specifically, we investigated the impact of the economic crisis on the firms, the impact of the economic crisis on investments and the future expectations of the Northern Greek firms. We found that for the majority of the respondents the economic crisis has a negative impact. This is reflected in their turnover and net profits but also in their reluctance to hire new employees. Moreover, 67.8 per cent of the respondents neither made an investment during the first half of 2012 nor plan to make an investment in the next six months (68.2 per cent). Furthermore, almost half of the respondents plan to expand into foreign markets while 39.2 per cent of the respondents intend to pursue a defensive strategy to tackle the crisis.

It is interesting that firms located near the Greek borders and also firms with more employees have been less affected by the crisis and are willing more to make new investments. In addition, the bigger--in terms of employees--a firm is, the more likely it is to undertake the risk of an expansion into a foreign market.

Finally, the vast majority of the respondents are optimistic about the future of their business, even though they believe that the Greek economy will recover at least after three years.

REFERENCES

(1.) Reinhart, C. M. and Rogoff, K. S.

i) This Time Is Different:Eight Centuries of Financial Folly (Princeton University Press, 2009)

ii) From financial crash to debt crisis, American Economic Review (5 : 2011)

(2.) Inklaar, R. and Yang, J., The Impact of Financial Crises and Tolerance for Uncertainty, Journal of Development Economics (2 : 2012)

(3.) Bloom, N., The impact of uncertainty shocks, Econometrica (3 : 2009)

(4.) Overbeek, H., Sovereign debt crisis in Euroland: Rootcauses and implications for European Integration, The International Spectator: Italian Journal of International Affairs (1 : 2012)

(5.) Nelson, R. M., Belkin, P. and Mix, D. E., Greece's Debt Crisis: Overview, Policy Responses, and Implications, U.S. Congressional Research Service, (August 18 : 2011).

(6.) Duchin, R., Ozbas, O. and Sensoy, B. A., Costly external finance, corporate investment, and the subprime mortgage credit crisis, Journal of Financial Economics (3 : 2010)

(7.) Campello, M., Giambona, E., Graham, J. R. and Harvey, C. R., Access to liquidity and corporate investment in Europe during the financial crisis, Review of Finance (2 : 2012)

(8.) Campello, M., Grahamb, J. R. and Harvey, C. R., The real effects of financial constraints: Evidence from a financial crisis, Journal of Financial Economics, Vol. 97 (2 : 2012)

(9.) Akbar, S., ur Rehman, S. and Ormrod, R, The impact of recent financial shocks on the financing and investment policies of UK private firms, International Review of Financial Analysis (26 : 2013)

(10.) Filippetti, A. and Archibugi, D., Innovation in times of crisis: National systems of innovation, structure, and demand, Research Policy (2 : 2011)

(11.) Mursaleen Shiraj, M. and Islam, A. sovereign debt crisis in Europe: A different crisis with a "Less Than Different" Impact on Bangladesh?, Modern Economy (Vol. 2 : 2011)

(12.) UNCTAD, World Investment Report: 2010: Investing in a Low-Carbon Economy, United Nations Publications (http://unctad.org/en/Docs/wir2010_en.pdf).

(13.) UNCTAD, World Investment Report : 2012: Towards a New Generation of Investment Policies, United Nations Publications (http://www.unctad-docs.org/files/UNCTAD-WIR2012-Full-en.pdf).

(14) (i) Lazaridis, I. and Pavlidou, V., Investment perspectives during the crisis: the case of the Republic of Cyprus, 8th International Conference on New Horizons in Industry, Business and Education, 29-30 August 2013, Crete Island, Greece. (2013)

(ii) Lazaridis, L, Livanis E. and Pavlidou, V., Investment perspectives during the crisis: the case of Northern Greece, 3rd International Conference of the Financial Engineering and Banking Society (FEBS), 6-8th June 2013, Paris (2013).

SUGGESTED READINGS

i. Brealey R. & Myers S., Principles of Corporate Finance. International Student Edition (1984).

ii. Arghyrou, M. G. and Tsoukalas, J. D., The Greek debt crisis: likely causes, mechanics and outcomes, The World Economy (2 : 2011)

iii. Blalock, G., Gertler, P. J. and Levine, D. L, Financial constraints on investment in an emerging market crisis, Journal of Monetary Economics (3 : 2008)

iv. European Commission, Economic crisis in Europe : causes, consequences and responses, European Economy (7, September 2009).

v. Fazzari, S., Hubbard, R. G. and Petersen, B. C., Finance constraints and corporate investment, Brookings Papers on Economic Activity, Economic Studies Program : The Brookings Institution (1 :1988)

vi. Gibson, H. D., Hall, S. G. and Tavlas, G. S., The Greek financial crisis: growing imbalances and sovereign spreads, Bank of Greece, Working Paper No. 124 (March 2011).

vii. Kaplan, S. N. and Zingales, L., Do investment-cash flow sensitivities provide useful measures of financing constraints?, Quarterly Journal of Economics (1 : 1997)

viii. Kouretas, G. P. and Vlamis, R, The Greek crisis: causes and implications, Panoeconomicus (4 : 2010)

ix. Lane, P. R., The European sovereign debt crisis, Journal of Economic Perspectives (3 : 2012)

x. Matheron, J., Mojon, B. and Sahuc, J.-G., The sovereign debt crisis and monetary policy, Financial Stability Review, No. 16, Banque de France (April 2012).

xi. Mitsopoulos, M. and Pelagidis Theodore, Understanding the Crisis in Greece: From Boom to Bust (Palgrave Macmillan, 2011)

Professor IOANNIS LAZARIDIS, Ph.D.

Email: lazarid@uom.gr

EFSTRATIOS LIVANIS, Ph.D.

Faculty Member

Email: slivanis@uom.gr

VASILIKI PAVLIDOU, ESQ.

Ph.D. Candidate

Email: pavlidouvas@uom.gr

Department of Accounting and Finance

University of Macedonia, 54006 Thessaloniki, Greece

The authors would like to thank the participants of the 3rd International Conference of the Financial Engineering and Banking Society (FEBS), 6-8th June 2013 at ESCP Europe, Paris, organized by the Financial Regulation Laboratory (LabEx-ReFi) for helpful comments.

The authors own full responsibility for the contents of the paper.

* It may be mentioned that the crisis in Ireland is not the result of a bad fiscal policy.

TABLE 1
RESPONSE RATE PER REGIONAL UNIT

Regional Unit (9)   Response rate (%)

Regional Units of East Macedonia and Thrace

Drama                       0
Evros                      25
Kavala                     80
Xanthi                     22
Rhodope                    67

Regional Units of Central Macedonia

Imathia                    100
Thessaloniki               36
Kilkis                     100
Pella                      100
Pieria                     100
Serres                     35
Chalkidiki                 33

Regional Units of West Macedonia

Grevena                    100
Kastoria                   75
Kozani                     100
Fiorina                    100

Regional Units of Epirus

Arta                        0
Thesprotia                 75
Ioannina                   100
Preveza                    100

Regional Units of Thessaly

Karditsa                   100
Larissa                    100
Magnesia                   100
Trikala                    92

TABLE 2
PERCENTAGE CHANGE DURING THE YEAR 2011 COMPARED TO 2010 (Q4 2011)
AND DURING THE FIRST HALF OF 2012 COMPARED TO THE PREVIOUS HALF
(Q2 2012) IN SALES VOLUME

              Negative (%)        No change (%)         Positive (%)

         >75   75-51   50-26   25-1    0     1-25   26-50   51-75   >75

Q4
  2011   1.5    4.1    21.4    33.2   14.3   17.9    4.1      1     2.6
Q2
  2012   1.6    6.2    20.2    31.1   12.4   20.7    4.1     2.1    1.6

TABLE 3
PERCENTAGE CHANGE DURING THE YEAR 2011 COMPARED TO 2010 (Q4 2011)
AND DURING THE FIRST HALF OF 2012 COMPARED TO THE PREVIOUS HALF
(Q2 2012) IN NET PROFITS

            Negative (%)         No change (%)          Positive (%)

         >75   75-51   50-26   25-1     0    1-25   26-50   51-75   >75
Q4
  2011   7.2    7.5    18.4    30.6   15.8   12.8    3.1       1    3.6
Q2
  2012   6.8    7.4    17.5    32.3   16.4   12.2    4.2     1.6    1.6

TABLE 4
PERCENTAGE CHANGE DURING THE YEAR 2011 COMPARED TO 2010 (Q4 2011) AND
DURING THE FIRST HALF OF 2012 COMPARED TO THE PREVIOUS HALF (Q2 2012) IN
THE NUMBER OF EMPLOYEES

                 Negative (%)  No change (%)        Positive (%)

         >75   75-51   50-26   25-1    0     1-25   26-50   51-75   >75
Q4
  2011   0.5    2.1     6.8    28.1   52.1   8.9      1       0     0.5
Q2
  2012   1.8    1.9     4.7    25.5    51    13.5     1      0.5

TABLE 5
RECRUITMENTS

in individuals in the next 6 months (%)

                                     [greater than
0      1-4    5-19   20-49   50-99   or equal to]    Do not know

56.2   13.4   3.5     2.5                 100           24.4

TABLE 6
IN YOUR OPINION, THE GREEK ECONOMY WILL RECOVER IN:

in years (%)

< 1   1-2   3-5    6-9   >10    Do not know

0.5   9.8   28.9   16    16.5      28.4

TABLE 7
ARE YOU OPTIMISTIC ABOUT THE FUTURE
OF YOUR BUSINESS?
(%)

Extremely   Very   Moderately   Slightly   Not at all

10.2        37.4      32.8        12.3        7.2

TABLE 8
PERCENTAGE CHANGE DURING THE FIRST HALF OF 2012 COMPARED
TO THE PREVIOUS HALF IN SALES VOLUME BASED ON THE PROXIMITY TO BORDERS

                       Percentage change during the first half of 2012
Proximity to borders   compared to the previous half in Sales volume

                           Negative (%)         No change (%)

                       >75   75-51   50-26   25-1   0      1-25

Group A                0.0   102     15.3    20.3   16.9   27.1
Group B                22    4.5     22.4    35.8   10.4   17.9

                       Percentage change during the first half of 2012
Proximity to borders   compared to the previous half in Sales volume

                           Positive (%)

                       26-50   51-75   >75

Group A                8.5     1.7     0.0
Group B                22      22      22

Pearson Chi-Square     Value        df      Asymp. Sig. (2-sided)

                       15.936 (a)   8       .043

TABLE 9
WILLINGNESS TO MAKE NEW
INVESTMENTS IN THE NEXT SIX MONTHS
BASED ON THE PROXIMITY TO BORDERS

Proximity to borders   Are you planning to make
                       new investments in the
                       next six months? (%)

                       Yes    No

Group A                52.5   47.5
Group B                23.6   76.4

Pearson Chi-Square     Value        df   Asymp. Sig. (2-sided)
                       16.204 (a)   1    .000

TABLE 10
PERCENTAGE CHANGE DURING THE FIRST HALF OF 2012 COMPARED TO THE
PREVIOUS HALF IN SALES VOLUME BASED ON THE NUMBER OF EMPLOYEES

No. of employees   Percentage change during the first half of
                   2012 compared to the previous half in
                   Sales volume

                           Negative (%)              No change (%)

                   >75          75-51    50-26    25-1    0       1-25

1-4                42           12.5     20.8     33.3    14.6    10.4
5-19               0.0          6.8      20.3     28.8    13.6    18.6
20-49              0.0          3.2      29.0     38.7    6.5     12.9
50-99              4.2          0.0      20.8     29.2    4.2     33.3
= 100              0.0          0.0      0.0      26.3    15.8    57.9

Pearson Chi-       Value        df       Asymp. Sig. (2-sided)
  Square
                   49.627 (a)   32       .024

No. of employees   Percentage change during the first half of
                   2012 compared to the previous half in
                   Sales volume

                         Positive (%)

                   26-50    51-75    >75

1-4                0.0      42       0.0
5-19               5.1      3.4      3.4
20-49              9.7      0.0      0.0
50-99              8.3      0.0      0.0
= 100              0.0      0.0      0.0

Pearson Chi-
  Square

TABLE 11
INVESTMENTS DURING THE FIRST HALF OF
2012 BASED ON THE NUMBER OF EMPLOYEES

No. of               Did you make any investment during the
employees            first half of 2012? (%)

                        Yes        No

1-4                     16.3      83.7
5-19                    31.7      68.3
20-49                   34.4      65.6
50-99                   52.0      48.0
= 100                   45.0      55.0

Pearson Chi-Square   Value        df     Asymp. Sig. (2-sided)

                     16.656 (a)   8      .034

TABLE 12
WILLINGNESS TO MAKE NEW
INVESTMENTS IN THE NEXT SIX MONTHS
BASED ON THE NUMBER OF EMPLOYEES

No. of employees     Are you planning to make new investments
                     in the next six months? (%)

                        Yes       No

1-4                     14.0      86.0
5-19                    35.0      65.0
20-49                   37.5      62.5
50-99                   40.0      60.0
= 100                   47.6      52.4

Pearson Chi-Square   Value        df     Asymp. Sig. (2-sided)
                     11.243 (a)   4      .024

TABLE 13
WILLINGNESS TO EXPAND INTO FOREIGN MARKETS BASED ON THE NUMBER OF
EMPLOYEES

No. of employees   Due to the current state of the Greek economy, I:

                    Have already    Plan / Want to    Don't plan /
                   expanded into     expand into     Don't want to
                    (%) foreign        foreign        expand into
                      markets        markets (%)        foreign
                                                      markets (%)

4-Jan                   4.0              14.0             82.0
5-19                    19.0             34.5             46.6
20-49                   21.9             40.6             37.5
50-99                   48.0             24.0             28.0
= 100                   54.5             18.2             27.3
COPYRIGHT 2015 Reprinted with permission from JFMA. Copyright reserved with JFMA.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Lazaridis, Ionnis; Livanis, Efstratos; Pavlidou, Vasiliki
Publication:Journal of Financial Management & Analysis
Article Type:Report
Geographic Code:4EUGR
Date:Jan 1, 2015
Words:4877
Previous Article:Impact of opening up of the Taiwan futures market to foreign investors : price effects of foreign investment liberalization: empirical analysis.
Next Article:Countries riding on crest of wave of heavy indebtedness resort to expensive external funding under harsh/non-palatable terms set by international...
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters