Economic performance of european agriculture companies using factor analysis

Economic performance of european agriculture companies using factor analysis

WoS Article

Agricultural production is one of the traditional sectors of the national economy. Business in this area is also very specific as it is highly dependent on weather and climate compared to other sectors. Increasingly, the sector has to be more and more environmentally sustainable, which is often a difficult task given its cost-effectiveness. In the article is analyzed economic performance, through financial data from 2 873 agriculture subjects in four parts of Europe. The main aim is to find crucial factors in the field of economic performance. Factor analysis was used for this finding. The new created variable is Factor of profitability, which includes variables ROE and ROCE. Then Pearson’s chi-square test was used to find possible dependencies between observed factor and the European region of the company. At the end of the paper, the corresponding map was constructed for a graphical representation of the newly calculated factor and the European region. Best results of profitability factor were achieved by Western and Northern countries and Southern countries are the worst performers in terms of profitability.

Agricultural production is one of the traditional sectors of the national economy. Business in this area is also very specific as it is highly dependent on weather and climate compared to other sectors. Increasingly, the sector has to be more and more environmentally sustainable, which is often a difficult task given its cost-effectiveness. In the article is analyzed economic performance, through financial data from 2 873 agriculture subjects in four parts of Europe. The main aim is to find crucial factors in the field of economic performance. Factor analysis was used for this finding. The new created variable is Factor of profitability, which includes variables ROE and ROCE. Then Pearson’s chi-square test was used to find possible dependencies between observed factor and the European region of the company. At the end of the paper, the corresponding map was constructed for a graphical representation of the newly calculated factor and the European region. Best results of profitability factor were achieved by Western and Northern countries and Southern countries are the worst performers in terms of profitability.

Economic performance. Agriculture. European Union. Factor analysis. Correspondence map.

Economic performance. Agriculture. European Union. Factor analysis. Correspondence map.

HORNUNGOVÁ, J.

2025

17.07.2023

Brazílie

1808-2882

Custos e Agronegocio On Line

18

4

Federative Republic of Brazil

338

348

11

http://www.custoseagronegocioonline.com.br/numero4v18/OK%2015%20performance%20english.pdf