Firm Size and Profitability in the Cement Industry Taken Over by Foreign Investors: Evidence from Poland (2019-2024)
Purpose: The study aims to determine whether firm size, measured by the logarithm of total assets, is a significant determinant of return on assets (ROA) in a highly concentrated and capital-intensive industry characterised by oligopolistic market conditions, in which all analysed enterprises are controlled by foreign capital groups. Design/Methodology/Approach: The study applies a quantitative research approach based on balanced panel data analysis. The empirical analysis covers eight cement producers operating in Poland, all belonging to international capital groups, and is based on annual financial statements for the period 2019–2024. The relationship between firm size (SIZE) and profitability (ROA) was examined using pooled ordinary least squares, fixed-effects, and random-effects models. Findings: The results indicate that firm size does not have a statistically significant impact on profitability measured by ROA in the cement industry in Poland. Practical Implications: The findings suggest that managers of cement-producing enterprises should not rely solely on increasing firm size as a source of profitability improvement. Originality/Value: The article contributes to the literature by providing empirical evidence on the relationship between firm size and profitability in a highly concentrated industrial sector characterised by oligopolistic competition and foreign ownership. Unlike studies based on diversified samples of manufacturing firms, this research examines a specific industry context in which all analysed companies operate as part of international capital groups.