Employees, Firm Size and Profitability of U.S. Manufacturing Industries

We examine the relation between firm size and profitability within 109 SIC four-digit manufacturing industries. Depending on our measure of profitability, we find that profitability increases at a decreasing rate and eventually declines in up to 47 of our industries. No relation between profitability and size is found in up to 52 of our industries. These two categories account for 97 of our 109 industries. Profitability continues to increase as firms become larger in up to 11 industries. Hence, the relation between size and profitability is industry specific. But, regardless of the shape of the size profitability function, we find that profitability is negatively correlated with the number of employees for firms of a given size measured in terms of total assets and sales. These results are puzzling in the context of work by others who report that common stock returns are negatively correlated with size when size is measured by the market value of a company or with the work of those who argue that size is a proxy for risk. Interpreted against these works, our findings may mean that large firms earn excess returns, that small firms fail to earn their cost of capital, or that accounting returns simply behave differently than market returns with respect to firm size

Impact of working capital management on profitability of the food processing and consumer goods business in New Zealand

The purpose of this study is to investigate the impact of working capital management (WCM) on the profitability of fifteen food processing and consumer service business listed in the New Zealand Exchange Board. The data were collected through the annual reports of the companies for five years and arranged by using Excel. The working capital was measured by it components like Account receivable period, Account payable period, Inventory conversion period, and cash conversion period. Whereas profitability was measured by Return on Assets, Return on Equity and Net profit margin. To analyse the relationship between WCM and profitability, regression analysis and correlation were used by making WCM components as independent variables and profitability as dependent variables. The correlation result reveals that there is negative relationship between the WCM components and profitability, and longer CCC leads to less profitability of the firm. Whereas the regression result reveals the negative relationship between ICP and ROA. Similarly, there is a negative relationship between ARP and ROE, and also between APP and NPM. Therefore, it is concluded that WCM have very much impact on the profitability of the business and businesses are recommend to decrease their ICP, ARP and CCC in order to increase profitability

Effects of Asset Structure, Operating Cash Flow, and Profitability on Debt Policy in Property and Real Estate Companies on the Indonesia Stock Exchange Period 2013-2017

This study aims to determine the effect of asset structure, operating cash flow, and profitability on debt policy in property and real estate companies in the Indonesia Stock Exchange in 2013-2017. The analytical method used is multiple linear regression, F test and t test. The results of the analysis of this study indicate that the structure of assets, operating cash flows, and profitability have a simultaneous effect on debt policy. Meanwhile the analysis partially shows that the asset structure, operating cash flows, and profitability do not partially affect debt policy

Product market reform and innovation in the EU

European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth

Heterogeneity, Profitability and Autocorrelations

This paper contributes to the development of recent literature on the explanation power and calibration issue of heterogeneous asset pricing models by presenting a simple stochastic market fraction asset pricing model of two types of traders (fundamentalists and trend followers) under a market maker scenario. It seeks to explain aspects of financial market behaviour (such as market dominance, under and over-reaction, profitability and survivability) and to characterize various statistical properties (including autocorrelation structure) of the stochastic model by using the the dynamics of the underlying deterministic system, traders? behaviour and market fractions. Statistical analysis based on Monte Carlo simulations shows that the long-run behaviour and convergence of the market prices, long (short)-run profitability of the fundamental (trend following) trading strategy, survivability of chartists, and various under and over-reaction autocorrelation patterns of returns can be characterized by the stability and bifurcations of the underlying deterministic system. Our analysis underpins mechanism on various market behaviour (such as under/over-reactions), market dominance and stylized facts in high frequency financial markets.asset pricing; heterogeneous beliefs; market fraction; stability; bifurcation; market behaviour; profitability; survivability; autocorrelation

ANALISIS PENGARUH KUALITAS AKTIVA PRODUKTIF DAN TINGKAT SUKU BUNGA KREDIT TERHADAP KEUNTUNGAN BANK

This research is limited to the problem of earning asset quality and loan interest rates in affecting bank profits. This analysis is measured by profitability ratios of ROE (Return On Equity) on the banks to go public on the Indonesian Stock Exchange in the period 2003­2008. The purpose of this study is to determine the effect of the proportion of quality in earning assets and interest rates of loans to bank profitability that listed in Indonesia Stock Exchange (BEI). The independent variables in this study is the quality in earning assets and interest rates on credit. Both of these variables investigated by partial effects (individual) and simultaneously (shared) to the dependent variable is profitability. Data from each variable were taken with the technical documentation by the end of the period during the years 2003­2008. Analisinyatechnique uses multiple linear regression. From the test results of significance test shows that the variable f earning asset quality and loan interest rates simultaneously significant effect on profitability as indicated by an f count 31.109> F table 4.050 at α = 5%. T test results showed that the quality in earning assets and the variable loan interest rate is partially a significant effect on profitability. Earning asset quality variable has a value of 2.729 t count> t table 1.9944 at α = 5%. While mortgage interest rates have t value 4.484> t table 1.9944 at α = 5%. Coefficient of determination (R ²) is 47.4%, this suggests quality in earning assets and the variable interest rate loans are able to explain 47.4% to 52.6%, while profitability is explained by other variables not included in this research model. From the whole analysis can be concluded that the greater the quality in earning assets and interest rates on loans will be greater the profitability of a ban

Mathematical onsets concerning the determination of the optimum limit of the profitability on enterprises

Our paper presents an original method named The Optimum Limit of the Profitability (O.L.P.), for the characterization of the optimum physical output for one enterprise. On our research paper for the definition of this concept we have started with the exploration of the mathematical models which can mark out the correlation between the components of The Optimum Limit of the Profitability. Then we have pursued the maximization of the acquired incomes, in special given conditions, given by the value of the optimum sales, concurrent with the minimization of the expenditures afferent them. After some analysis and simulations we conclude that the mathematical models offered by the linear analysis would answer at all requirements of our research. The determination of The Optimum Limit of the Profitability by the linear programming method suppose the prosecution of the budget of the entire activity for one year divided in less periods of time (trimester divided in months ). Then, we present the steps succeeded for the elicitation of the The Optimum Limit of the Profitability using the mathematical models offered by the linear programming and the usefulness of this for the output of enterprise.output, incomes, costs, profitability, limit of the profitability, The Optimum Limit of the Profitability