Empirical Approaches Regarding the Financial Performance of the US Companies
Empirical Approaches Regarding the Financial Performance of the US Companies

Author(s): Alexandra Ioana Vintila
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Financial performance; Corporate governance; Non-financial companies; Panel data; Multiple regression
Summary/Abstract: The aim of the paper is to determine the factors which have a significant impact on the financial performance of US companies. Using a database consisting of the non-financial companies included in the S&P 500 Index, over the period 2004-2023, there are estimated multiple linear regression models with unbalanced panel data, incorporating fixed effects and random effects. The main results indicate that the global financial crisis led to a decline in the US companies’ performance, contrary to the Covid-19 pandemic crisis which conducted to an increase in the performance of the US companies. Moreover, the S&P 500 companies could achieve higher financial performance by increasing the number of members on the board, the percentage of women members on the board, and the company net debt, and lowering the level of company taxation.

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