The effect of a firm’s internal factors on its profitability: Evidence from Jordan

Dahmash, Firas; Salamat, Wasfi Al; Masadeh, Walid; Alshurafat, Hashem

doi:10.21511/imfi.18(2).2021.11

Cited by 29 publications

(21 citation statements)

References 38 publications

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“…Moreover, in the case of Italy, change in GDP also shows a positive influence on ROE. These results are consistent with those obtained by Susilo et al (2020) for Indonesian firms in the period 2010-2017 [55], with the results of Dahmash et al ( 2021) in a study conducted on Jordanian firms for the period 2011-2018 [96], and with the findings of Le et al (2020) for Vietnamese firms in the period 2008-2015 [35].…”

Section: Plos Onesupporting

confidence: 92%

“…Some previous research used company growth as the percentage change in operating income [ 2 , 13 , 16 , 35 ]. However, as in this study, other researchers consider company growth to be the percentage change in total assets [ 29 , 55 , 95 , 96 ]. These research results show a positive and significant relationship between the percentage change in assets and company profitability, consistent with Hypothesis 3.…”

Section: Methodsmentioning

confidence: 99%

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Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Farías

Martínez²,

Martín-Cervantes³

2022

PLoS ONE

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The natural stone sector is an important driver of the Spanish and Italian economies, which underwent internationalization after the financial crisis of 2008 as part of a survival and development strategy. This article aims to study the financial and economic profitability of this sector in the two leading European production countries, as well as its determinants. For this purpose, the economic-financial data of a sample composed of 453 companies (203 Spanish and 250 Italian) from 2015–2019 were analyzed using the multiple linear regression methodology. To address the problems of possible endogeneity and omission of variables in the model, the dependent variable was used as a regressor with one and two lags, and panel data with fixed effects were considered after performing the Hausman test. The results show significant differences between the two countries, with higher profitability in Italy. Company size, company growth (measured as the change in assets), and the variation in the country’s GDP all positively affected profitability. At the same time, the level of indebtedness showed a negative relationship. The country’s inflation rate and gender diversity in top management were shown to be non-relevant variables. The research conducted indicates that, to increase profitability, Spanish and Italian companies in the natural stone sector should undergo mergers in order to grow in size, increase efficiency in the use of assets, reduce their dependence on external financing, and promote equity capital. In addition, Italian companies should reduce the average period of payment to suppliers to lower deferral costs, and boost exports to become less dependent on the country’s domestic economy.

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Section: Plos Onesupporting

confidence: 92%

Section: Methodsmentioning

confidence: 99%

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Farías

Martínez²,

Martín-Cervantes³

2022

PLoS ONE

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“…Hasil yang diperoleh dari penelitian (Nuriyanto, 2019) yaitu variabel asset growth berpengaruh positif signifikan terhadap profitabilitas. Penelitian lain yang juga mendapatkan hasil bahwa pertumbuhan aset berpengaruh positif signifikan terhadap profitabilitas yaitu penelitian (Triyani et al, 2018), (Isgiyarta & Aryani, 2020) dan (Dahmash et al, 2021).…”

Section: H3: Perputaran Persediaan Berpengaruh Positif Signifikan Ter...unclassified

Pengaruh Perputaran Kas, Struktur Modal, Perputaran Persediaan, Asset Growth Dan Total Asset Turnover terhadap Profitabilitas

Nafi'ah

Wiyono

Kusumawardhani

2022

reslaj

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This study aims to analyze the effect of Cash Turnover, Capital Structure (DER), Inventory Turnover, Asset Growth and Total Asset Turnover (TATO) on Profitability (ROA). The type of research used is quantitative research. The sampling method in this study used a purposive sampling technique. The sample used is 5 automotive and component companies listed on the Indonesia Stock Exchange for the period 2012-2019. Data were analyzed by multiple linear regression analysis method and classical assumption test obtained using SPSS version 25 program. The results showed that cash turnover partially had a negative and significant effect on profitability (ROA), capital structure (DER) partially had a positive and significant effect. on profitability (ROA), inventory turnover partially negative and significant effect on profitability (ROA), asset growth partially positive and significant effect on profitability (ROA) and total asset turnover (TATO) partially positive and significant effect on profitability (ROA ). The results of the study simultaneously show that the variables of cash turnover, capital structure (DER), inventory turnover, asset growth and total asset turnover (TATO) have a positive and significant effect on profitability (ROA). Keywords: Cash Turnover, DER, Inventory Turnover, Asset Growth, TATO, ROA

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“…Sin embargo, la mayor motivación de los investigadores es determinar los factores que inciden en la rentabilidad de las empresas. Algunos autores (Dahmash et al, 2021;Mudjijah, 2017;Parra, 2011;Prijadi y Desiana, 2017) clasifican los factores que inciden en la rentabilidad en tres categorías: (i) variables internas de la empresa: en lo que destacan los indicadores financieros, número de trabajadores; (ii) variables relacionadas al entorno de la empresa: en esta categoría resaltan la ubicación geográfica, la industria a la que pertenece la empresa e indicadores macroeconómicos, finalmente (iii) variables asociadas a la capacidad de gestión de los accionistas: en esta categoría se consideran la instrucción académica, género, estado civil, entre otras.…”

Section: Marco Teóricounclassified

Factores explicativos de la rentabilidad de las microempresas: Un estudio aplicado al sector comercio

Farías

Rivera-Naranjo

Quimi-Franco

et al. 2021

IRJ

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El presente estudio tiene como objetivo determinar los factores que explican la rentabilidad económica de las microempresas que pertenecen al sector comercio de la provincia del Guayas mediante un modelo de regresión lineal múltiple con datos suministrados por 788 empresas que reportaron sus estados financieros a la Superintendencia de Compañías, Valores y Seguros en el año 2019. Los resultados de estudio mostraron que el endeudamiento, el nivel de liquidez y el tamaño tienen una relación negativa y significativa con la rentabilidad. Este estudio también muestra que la rotación de activos, el capital de trabajo y el impacto de los gastos administrativos tienen una incidencia directa con el rendimiento sobre activo. Esta investigación pone de manifiesto la importancia de la información contable y financiera para explicar el comportamiento de la rentabilidad económica. Las conclusiones de este estudio pretenden ofrecer orientaciones a las empresas sobre las estrategias que deben adoptar para mejorar su rendimiento.

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The effect of a firm’s internal factors on its profitability: Evidence from Jordan

Cited by 29 publications

References 38 publications

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Profitability determinants of the natural stone industry: Evidence from Spain and Italy

Pengaruh Perputaran Kas, Struktur Modal, Perputaran Persediaan, Asset Growth Dan Total Asset Turnover terhadap Profitabilitas

Factores explicativos de la rentabilidad de las microempresas: Un estudio aplicado al sector comercio

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