Determinants of profit ability of listed companies in oil palm plantation sector in Malaysia

• Main Author: Lesalene, Gunasekaran
• Format: Thesis
• Language: English; English
• Published: 2022
• Subjects: HG Finance
• Online Access: https://etd.uum.edu.my/11106/1/Depositpermission_s825854.pdf; https://etd.uum.edu.my/11106/2/s825854_01.pdf; https://etd.uum.edu.my/11106/

This study explores the determinants profitability in oil palm companies which are listed in Bursa Malaysia. Return on assets (ROA) is used as a measurement for company profitability while for independent variables, the company specifics determinants (internal factor) are used to determine the company profitability. The company specific determinants are size, liquidity, leverage, and sales growth while This study utilizes a sample of 30 companies listed in Bursa Malaysia for over the period 2015-2020. The data are analysed using Panel Least Squares Method. The findings show that sales growth and leverage have a positive and significant relationship with the ROA, have a positive and significant relationship with the ROA, indicating that, bigger size companies, highly liquid companies, and companies that able to generate higher sales will have more profits. On the other hand, size and liquidity have a negative significant implying that companies that have high debt ratio will have higher losses.