Reverse Factoring, Environmental Subsidies, and Investment Returns: Panel Evidence from European Logistics Firms

Samariddin Makhmudov; Aziza Matyakubova; Toshmurod Kulmanov; Mukhiddin Kurbanov; Gulchekhra Nazarova; Boburjon Turanboyev; Komila Achilova

doi:10.32479/ijefi.21780

Authors

Samariddin Makhmudov Department of Finance and Tourism, Termez University of Economics and Service, Termez, Uzbekistan; & Department of Economics, Mamun University, Khiva, Uzbekistan; & Center of the Engagement of International Ranking Agencies, Tashkent State University of Economics, Tashkent, Uzbekistan
Aziza Matyakubova Department of Economics, Urgench State University, Urgench, Uzbekistan
Toshmurod Kulmanov Department of World Economy and International Economic Relations, Tashkent State University of Economics, Tashkent, Uzbekistan
Mukhiddin Kurbanov Department of Tax and taxation, Tashkent State University of Economics, Tashkent, Uzbekistan
Gulchekhra Nazarova Department of Convergence of the Digital Technologies, Tashkent University of Information Technologies named after Muhammad al-Khwarizmi, Tashkent, Uzbekistan
Boburjon Turanboyev Department of International Tourism and Economics, Kokand University, Kokand, Uzbekistan
Komila Achilova University of Tashkent for Applied Sciences, Tashkent, Uzbekistan

DOI:

https://doi.org/10.32479/ijefi.21780

Keywords:

Logistics Sector, Reverse Factoring, Environmental Subsidies, Return on Investment, Panel Data

Abstract

This article evaluates the drivers of investment performance in European logistics, with a focus on the dimensions of supply chain financing and sustainability incentives. Using annual data provided by the Moody’s Orbis (Bureau van Dijk) database, 24 logistics companies in Continental Europe from 2013 to 2024 were analyzed to examine how each of the reverse factoring, environmental subsidies, inventory financing, and liquidity condition affect investment efficiency. Firm performance is measured by return on investment, profit margin, and cost savings. The analysis uses pooled OLS, fixed and random effects panel regression to account for heterogeneity across firms and time. Results indicate that reverse factoring improves the return on investment, highlighting it is important for financial flexibility in logistics. In contrast, inventory financing negatively affects all three of performance measures which reflects collateral borrowing risks. Environmental subsidies have a moderate positive effect, while no cash ratio has a statistically significant effect on performance. The findings as a whole underscore how policies and financing strategies play in investment performance, which will be of use to both corporate operating managers and policy makers.