The determinants of firm profitability: An analysis on Philippine publicly listed companies
Date of Publication
2014
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Nimpha M. Aquino
Defense Panel Member
Rodiel C. Ferrer
Herminigilda E. Salendrez
Abstract/Summary
As the business environment is ever changing, firms need to adapt to survive. However, many studies published regarding the determinants of firm profitability have mixed results, thus leading into a state of doubt for the best firm practices. In this proposal, the researchers have determined 14 different variables, ranging from 7 categories, such as (1) firm liquidity, (2) debt structure, (3) asset management efficiency, (4) firm size, (5) ownership structure, (6) board structure, and (7) firm age. Their relationships to profitability, as measured by the Return on Assets and Return on Equity, are to be studied using 2009-2013 data from publicly listed firms in the Philippines. This paper aimed to discover, using panel regression and correlation, the multiple facets of a familiar phenomenon, which is firm profitability.
In order to address the objectives of the paper, the researchers used descriptive statistics to identify the different trends included in the population of industries. After determining the implications of these data, the researchers used Pearson's correlation to preliminarily identify the relationships between the variables. After the determination of the correlation between the variables, the researchers used panel data analysis to formally determine the effects of each independent variable.
These different statistical tools and tests were used on the relevant data from Philippine publicly listed firms from 2009-2013. After proper analysis, the researchers concluded that only firm size and asset management efficiency are the variables that significantly affect firm profitability. These two variables were seen to have a positive effect on an entity's profitability.
Abstract Format
html
Language
English
Format
Accession Number
TU18855
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
ix, 158 leaves : illustrations (some colored) ; 28 cm. + ; 1 computer optical disc.
Recommended Citation
Arvesu, F. R., Co, K. S., & Rivera, R. L. (2014). The determinants of firm profitability: An analysis on Philippine publicly listed companies. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/11824