Reinvestments in dentistry and differences between western or central and eastern European countries
Tomas Heryan1
1 Asst Prof., Department of Finance and Accounting, Silesian University, School of Business Administration, Karviná, Czech Republic
Article History
Received: 5 September 2022 Revised: 30 November 2022 Accepted: 1 December 2022 Available Online: 5 December 2022
Keywords: reinvestment of profit, Management of earnings, Dentistry, GMM with panel data
JEL classification: C58; D25; E21; G39
Citation: Heryan, T. (2022). Reinvestments in dentistry and differences between western or central and eastern European countries, Review of Socio-Economic Perspectives, 7(4), 55-61.
Abstract
This paper has focused on the willingness of owners to reinvest their profit back into a company. Research gaps in the investigation of financial issues in the healthcare industry are apparent in the literature. The aim of this paper is to estimate the differences in reinvestments between dentistry companies operating in western or central and eastern Europe (CEE). Annual Orbis data were obtained from financial reports from 3,711 western and 1,173 CEE companies. The generalized method of moments with panel data, currently modified by Kripfganz (2019), has been deployed as the main estimation technique. The estimated sample has been divided according to the return on assets into quartiles. The results clearly show that western owners rather reinvested their earnings back into their businesses, whereas CEE owners reinvest at a lower level. Furthermore, the willingness to reinvest, as well as the financial constraints related to that, can affect the quality of dentistry services.
E-mail: heryan@opf.slu.cz & ORCID: https://orcid.org/0000-0003-2027-7149
DOI: https://doi.org/10.19275/RSEP141
Article Type: Original Paper
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