Factors influencing financial performance in South Africa’s food and beverage industry: An empirical analysis
Factors influencing financial performance in South Africa’s food and beverage industry: An empirical analysis

Summary/Abstract: Purpose: This study aims to investigate thedeterminants of financial performance in the foodand beverage sector of South Africa, focusing on 11listed companies on the Johannesburg StockExchange. Methodology: The study employs paneldata regression analysis using secondary datasourced from the Integrated Real-time Equity System(IRESS) Library, covering the period from 1988 to2017. Return on assets (ROA) is used as theperformance indicator, while the explanatoryvariables include debt ratio, cash conversion cycle,leverage, labour, and capital. Results: The study’sfindings reveal that labour and capital arestatistically significant determinants of financialperformance in the food and beverage sector of SouthAfrica. On the other hand, debt ratio, cash conversioncycle, and leverage have an insignificant impact onthe firms' performance. Theoretical contribution:This study contributes to the literature on thedeterminants of financial performance in the foodand beverage sector, particularly in the context ofSouth Africa. The findings highlight the importance oflabour and capital as key factors influencing financialperformance in the sector. Practical implications: Thestudy's results have practical implications formanagers and stakeholders in the food and beveragesector of South Africa. It is recommended that firmsin the sector pay more attention to labour and capitalas these variables have proven to be strongdeterminants of financial performance.

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