Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?

This article aims to assess how fiscal and financial incentives and government support conditioned the profitability of Portuguese SMEs between 2010 and 2019. The high tax and financial burdens on SMEs have consequences for sustainability and business development. Thus, the study analyzes different...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Sara Picas, Pedro Reis, António Pinto, José Luís Abrantes
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	tax incentives financial incentives grants profitability government incentives ROA Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/42be64280c3040d0bd4f46ebc481629a
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:42be64280c3040d0bd4f46ebc481629a
record_format	dspace
spelling	oai:doaj.org-article:42be64280c3040d0bd4f46ebc481629a2021-11-11T19:34:00ZDoes Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?10.3390/su1321118662071-1050https://doaj.org/article/42be64280c3040d0bd4f46ebc481629a2021-10-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/11866https://doaj.org/toc/2071-1050This article aims to assess how fiscal and financial incentives and government support conditioned the profitability of Portuguese SMEs between 2010 and 2019. The high tax and financial burdens on SMEs have consequences for sustainability and business development. Thus, the study analyzes different incentives provided by the Portuguese government to ease this burden and improve business profitability. The study uses panel data with fixed effects using five different sources of information from five internal tax grant types, three different European Union program financial subventions, and three national budget-specific expenses. The results obtained suggest that tax incentives influence the profitability of SMEs; however, government incentives do not have any impact. The QREN (financial) incentives positively decide the ROA and negatively impact the ROE, contributing to sustainable performance. Portugal 2020 incentives have a weak effect on the first years, improving in the following years. However, the incentive related to R&D is not relevant. This work aims to contribute to decision making for managers, shareholders, and government entities, allowing them to choose those measures that could increase the company’s added value, and for governments, as a tool to select incentives that will most benefit SMEs’’ profitability. This work identifies the key incentives that impact companies’ profitability.Sara PicasPedro ReisAntónio PintoJosé Luís AbrantesMDPI AGarticletax incentivesfinancial incentivesgrantsprofitabilitygovernment incentivesROAEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 11866, p 11866 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	tax incentives financial incentives grants profitability government incentives ROA Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	tax incentives financial incentives grants profitability government incentives ROA Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Sara Picas Pedro Reis António Pinto José Luís Abrantes Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
description	This article aims to assess how fiscal and financial incentives and government support conditioned the profitability of Portuguese SMEs between 2010 and 2019. The high tax and financial burdens on SMEs have consequences for sustainability and business development. Thus, the study analyzes different incentives provided by the Portuguese government to ease this burden and improve business profitability. The study uses panel data with fixed effects using five different sources of information from five internal tax grant types, three different European Union program financial subventions, and three national budget-specific expenses. The results obtained suggest that tax incentives influence the profitability of SMEs; however, government incentives do not have any impact. The QREN (financial) incentives positively decide the ROA and negatively impact the ROE, contributing to sustainable performance. Portugal 2020 incentives have a weak effect on the first years, improving in the following years. However, the incentive related to R&D is not relevant. This work aims to contribute to decision making for managers, shareholders, and government entities, allowing them to choose those measures that could increase the company’s added value, and for governments, as a tool to select incentives that will most benefit SMEs’’ profitability. This work identifies the key incentives that impact companies’ profitability.
format	article
author	Sara Picas Pedro Reis António Pinto José Luís Abrantes
author_facet	Sara Picas Pedro Reis António Pinto José Luís Abrantes
author_sort	Sara Picas
title	Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
title_short	Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
title_full	Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
title_fullStr	Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
title_full_unstemmed	Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?
title_sort	does tax, financial, and government incentives impact long-term portuguese smes’ sustainable company performance?
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/42be64280c3040d0bd4f46ebc481629a
work_keys_str_mv	AT sarapicas doestaxfinancialandgovernmentincentivesimpactlongtermportuguesesmessustainablecompanyperformance AT pedroreis doestaxfinancialandgovernmentincentivesimpactlongtermportuguesesmessustainablecompanyperformance AT antoniopinto doestaxfinancialandgovernmentincentivesimpactlongtermportuguesesmessustainablecompanyperformance AT joseluisabrantes doestaxfinancialandgovernmentincentivesimpactlongtermportuguesesmessustainablecompanyperformance
_version_	1718431460611850240

Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?

Ejemplares similares