Determinants of Financial Performance in Advertising and Marketing Companies: Evidence from the CEE Countries

  1. Tetiana Zavalii
  2. Serhii Lehenchuk*
  3. Lyudmyla Chyzhevska
  4. Iryna Hrabchuk
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Abstract

The issue of key determinants affecting the financial performance of advertising and marketing companies in Central and Eastern Europe remains understudied, despite the industry's rapid growth and regional specifics. This study investigates financial performance determinants of advertising and marketing companies in four CEE countries (the Czech Republic, Poland, the Slovak Republic, and Ukraine) using panel data from 2021-2023. The study examines three financial performance measures (ROA, ROE, and Operating Profit Margin) using three independent variables (Current Ratio, Debt to Equity, and Total Asset Turnover) and control variables such as Company Size, Leverage, and Company Type. The results show that Total Asset Turnover consistently has a significant positive impact on ROA and ROE across all countries studied, highlighting the crucial role of efficient asset and equity management in the CEE region.

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  1. Version published to 10.20944/preprints202501.2290.v1