Firm and industry effects on firm profitability: an empirical analysis of KSE
Syed Ali Raza, Muzamil Farooq, Nadeem Akhtar Khan
Abstract
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Syed Ali Raza, Muzamil Farooq, Nadeem Akhtar Khan
Abstract
Open-access reader
The study meant to explore the external and internal factors which influence firm’s profitability i.e. “Firm and Industry Effects on Firm Profitability”. In this research ROA and ROE has taken as profitability measure and their dependency has checked with firm effect, industry effect and market share. Data has extracted from “Balance Sheet Analysis of Joint Stock Companies Listed on the Karachi Stock Exchange Volume-II 2004-2009” which is state bank of Pakistan publications and it represents six year financial statements of the firms. By using Regression analysis technique result has found which represent that all three independent factor i.e. firm effect, industry effect and market share are significant with ROA and ROE.
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The study meant to explore the external and internal factors which influence firm’s profitability i.e. “Firm and Industry Effects on Firm Profitability”. In this research ROA and ROE has taken as profitability measure and their dependency has checked with firm effect, industry effect and market share. Data has extracted from “Balance Sheet Analysis of Joint Stock Companies Listed on the Karachi Stock Exchange Volume-II 2004-2009” which is state bank of Pakistan publications and it represents six year financial statements of the firms. By using Regression analysis technique result has found which represent that all three independent factor i.e. firm effect, industry effect and market share are significant with ROA and ROE.
Key concepts: Profitability index, Stock exchange, Business, Market share, Regression analysis, Balance sheet, Econometrics, Accounting