The company size as a determinant of financial result

Abstract

In different studies examined the determinants that significantly determine a company's financial performance. The size of the company is often mentioned as a determinant of the financial result. However, the results of researchs by authors around the world are not uniform, so we have claims that the size of the company positively affects the financial result, the size of the company negatively affects the financial result and researchs that emphasizes the lack of influence of company size on the financial result. In accordance with that, the main goal of the article is to use scientific methods to examine through empirical research whether the size of a company is a determinant of the financial result of a company in Serbia. The results of the research show that there is a statistically significant correlation between the size of the company and the financial result, ie that large companies in the real sector are more profitable compared to smaller companies.