The determinant of firm's profitability: evidence from Malaysian manufacturing company / Siti Irinah Ires

• Main Author: Ires, Siti Irinah
• Format: Student Project
• Language: English
• Published: 2017
• Subjects: Profits. Corporate profits
• Online Access: https://ir.uitm.edu.my/id/eprint/108170/1/108170.pdf; https://ir.uitm.edu.my/id/eprint/108170/

This study attempted to investigate the determinants of a company’s profitability based on manufacturing in sector in Malaysia. The dependent variable of this study is profitability and the independent variables are growth, fixed asset, financial leverage and working capital. This study used the return on asset to measure profitability of company, asset value to measure growth, fixed asset to total asset to measure fixed asset, total liabilities to market value of equity used to measure financial leverage and current ratio to measure the working capital. This study will involve 15 manufacturing companies that listed in Bursa Saham Malaysia during period of 2010 to 2016. The empirical evidence found that there is a positive significant relationship between fixed asset, working capital and profitability. Meanwhile, financial leverage and growth have negative but insignificant relationship with profitability.