Greek Fish Farming: Measuring Profitability and Efficiency of the Sector at the peak of Economic Crisis

Abstract

Fish farming play important role in providing food and income in many EU countries, either as a stand-alone activity or in association with crop agriculture and livestock rearing. Fish farming is widespread in Greece and differs only with respect to species, production systems and volumes. Moreover, the Greek economic crisis has heavily affected the fish farming sector and challenges the competitiveness of farms. The objective of the current paper is the examination of the profitability and efficiency of the Greek fish farming industry during the most crucial years of Greek economic crisis by measuring firm’s performance using a panel data set of companies. The research is based on financial data of sixty-eight aquaculture firms for the period 2010-2015. The empirical results indicate that firms share of total sales has a positive impact on profitability, while an alternative proxy, the total assets is negatively linked to efficiency. Firm's profitability is positively affected by liquidity, working capital management, productivity and industry’s growth and negatively by financial and operating leverage. Firms Efficiency is determined positively by profitability and ability to repay its debt obligations and negatively by capital intensity, operating leverage and size