A model for testing the relationship between company’s size and performance: a cross country analysis

The purpose is to verify whether the company’s size (in terms of
production value) could be considered as a relevant factor in impacting
company performance, taking into consideration the country variable. Italian
and German companies have been compared. The country factor (considering
its structural and economic characteristics that are different from the company’s
size) has a primary importance in determining the differences of performance
between German and Italian companies. There is a weak relationship between
the companies’ performance and their size. Size factor is not one of the main
factors that explain why the performance of the German companies is better
than Italian ones. Global differences are mainly due to the structural and
economic characteristics of each country and, in residual form, due to different
size of the companies operating in those two countries. The research is
characterised by several theoretical and practical implications, especially for
top management and investors.