A MODEL FOR VERIFYING THE CORRELATION BETWEEN THE COMPANY’S SIZE AND ITS PERFORMANCE

The purpose of the research is to verify if the company’s size (in terms of production value) could be considered as a relevant factor in impacting their performance. To reach this purpose, the Italian and German companies have been compared. Thanks to an empirical evidence in a sample composed of 41,344 Italian companies and 12,219 German companies, operating in different sectors, the correlations among several variables (country, production value cluster, and financial indicators) shows that the country factor has a primary importance in determining the differences of performance between German and Italian companies. On the contrary, the company performance and company’s size are poorly correlated, meaning that the size factor is not one of the main factors that explains why the performance of the German companies is better than Italian ones. The research is characterized by series of both theoretical and practical implications, especially for the management and the investors.