Analysis of determinants of uncertainty in the production of the brewing industry: An empirical approach

Abstract

The economic instability, because of the ten-year economic crisis in Greece, leads businesses to conditions of uncertainty. The uncertainty in the results of the investment evaluation creates conditions of risk in decision-making during the implementation of any strategy in the management of industrial units. In this article, an empirical analysis is made to estimate the uncertainty of production in the beverage industry and in the European Brewery sector using an appropriate statistical model. The results obtained show that increasing trends in production and consumption tax revenues are associated with increasing trends in production uncertainty. The research done confirms the results of other similar research that investigate the sign of the investment-uncertainty relationship.