Factors determining Profitability: A Study of Selected Manufacturing Companies listed on Colombo Stock Exchange in Sri Lanka

Sivathaasan Nadarajah · Rajalingam Tharanika · Muthulingam Sinthuja · Vivin Hanitha

56 citations0/0 files storedEuropean Journal of Business and Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Analysis and Corporate Governance Corporate Finance and Governance Working Capital and Financial Performance

Abstract

This paper aims to investigate whether factors such as c apital structure, working capital, firm size, non-debt tax shield and growth rate, determining profitability have any impact on profitability of selected manufacturing companies listed on Colombo stock exchange, Sri Lanka over a period of five years from 2008 to 2012. This study employs multiple regression analysis to measure relationship among variables, individual and overall impact on profitability and to test the operational hypotheses. The results revealed that whereas all independent variables explain 76.6% and 84.7% of the variance on ROA and ROE respectively where significant is at 5% levels, the overall model has a significant impact on profitability at the rate of 80.5 % (Adjusted R 2 = 80.5%, P 0.05). Keywords : Profitability, Determinants of Profitability, Colombo Stock Exchange

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 56 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1984Corporate financing and investment decisions when firms have information that investors do not have 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers 1958The Cost of Capital, Corporation Finance and the Theory of Investment 1988The Determinants of Capital Structure Choice 1984On the Existence of an Optimal Capital Structure: Theory and Evidence 1995What Do We Know about Capital Structure? Some Evidence from International Data 2001Ownership structure and corporate performance

Cited by

2018Structural and market-related factors impacting profitability: A cross sectional study of listed companies 2020Determinants of Profitability: A Study on Manufacturing Companies Listed on the Dhaka Stock Exchange 2018Panel Data Analysis of Profitability Determinants: Evidence from Indian Telecom Companies 2017Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model 2020The effect of cash holdings on firm performance: Evidence from Vietnam listed firms

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.