Testing the Relationship between Exports and Return on Equity for Polish Manufacturing Companies Listed on the Warsaw Stock Exchange in the Years 2003-2010
Keywords:
dynamic panel data models, export, return on equity, corporate financeAbstract
The purpose of the study is to verify the hypothesis holding that the positive effects of exports improve the profitability of businesses. The positive impact of exports on return on equity is confirmed by both a dynamic panel data model and Granger causality test. Calculations were performed for 50 manufacturing companies listed on the Warsaw Stock Exchange. The dynamic panel data model was estimated using the Blundell-Bond estimation technique.
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