Author: Fred R. Kaen
Publisher:
ISBN:
Category :
Languages : en
Pages : 72
Book Description
We examine the relation between profitability and size for sixty-four manufacturing industries between 1990 and 2001. We use three measures of profitability: Earnings before interest, taxes, depreciation and amortization as a percent of sales (EBITDA margin); earnings before interest and taxes as a percent of sales (EBIT margin) and EBIT as a percent of total assets (EBIT/TA). Our measure of firm size is the natural log of the number of employees.We find the following:(1) In about half of the sixty-four industries firm profitability increases at a decreasing rate and eventually declines as firms become larger.(2) For the remaining half of our manufacturing industries, no relationship exists between size and profitability.(3) For a given level of total assets, firms with fewer employees exhibit greater profitability.(4) For a given level of sales, firms with fewer employees exhibit greater profitability.Our results are consistent with theories of firm size that specify trade-offs between economies of scale and organizational costs and with theories that ascribe certain competencies to firms that allow them to offset the advantages often ascribed to large firms such as economies of scale.
Firm Size, Employees and Profitability in U.S. Manufacturing Industries
Author: Fred R. Kaen
Publisher:
ISBN:
Category :
Languages : en
Pages : 72
Book Description
We examine the relation between profitability and size for sixty-four manufacturing industries between 1990 and 2001. We use three measures of profitability: Earnings before interest, taxes, depreciation and amortization as a percent of sales (EBITDA margin); earnings before interest and taxes as a percent of sales (EBIT margin) and EBIT as a percent of total assets (EBIT/TA). Our measure of firm size is the natural log of the number of employees.We find the following:(1) In about half of the sixty-four industries firm profitability increases at a decreasing rate and eventually declines as firms become larger.(2) For the remaining half of our manufacturing industries, no relationship exists between size and profitability.(3) For a given level of total assets, firms with fewer employees exhibit greater profitability.(4) For a given level of sales, firms with fewer employees exhibit greater profitability.Our results are consistent with theories of firm size that specify trade-offs between economies of scale and organizational costs and with theories that ascribe certain competencies to firms that allow them to offset the advantages often ascribed to large firms such as economies of scale.
Publisher:
ISBN:
Category :
Languages : en
Pages : 72
Book Description
We examine the relation between profitability and size for sixty-four manufacturing industries between 1990 and 2001. We use three measures of profitability: Earnings before interest, taxes, depreciation and amortization as a percent of sales (EBITDA margin); earnings before interest and taxes as a percent of sales (EBIT margin) and EBIT as a percent of total assets (EBIT/TA). Our measure of firm size is the natural log of the number of employees.We find the following:(1) In about half of the sixty-four industries firm profitability increases at a decreasing rate and eventually declines as firms become larger.(2) For the remaining half of our manufacturing industries, no relationship exists between size and profitability.(3) For a given level of total assets, firms with fewer employees exhibit greater profitability.(4) For a given level of sales, firms with fewer employees exhibit greater profitability.Our results are consistent with theories of firm size that specify trade-offs between economies of scale and organizational costs and with theories that ascribe certain competencies to firms that allow them to offset the advantages often ascribed to large firms such as economies of scale.
Profitability and Size of Firm
Author: Herman Otto Stekler
Publisher:
ISBN: 9781258309718
Category :
Languages : en
Pages : 124
Book Description
Publisher:
ISBN: 9781258309718
Category :
Languages : en
Pages : 124
Book Description
Profitability Patterns and Firm Size (Classic Reprint)
Author: Michael Treacy
Publisher: Forgotten Books
ISBN: 9780365499718
Category : Mathematics
Languages : en
Pages : 50
Book Description
Excerpt from Profitability Patterns and Firm Size Bowman has produced empirical evidence that he suggests is in disagreement with the well known result that risk and return are positively associated. The fundamental empirical result obtained is that in most industries the average level of return on equity is negatively correlated with the variance of the returns on equity.[2] This result was obtained in 58 of the 85 Value Line industries tested. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Publisher: Forgotten Books
ISBN: 9780365499718
Category : Mathematics
Languages : en
Pages : 50
Book Description
Excerpt from Profitability Patterns and Firm Size Bowman has produced empirical evidence that he suggests is in disagreement with the well known result that risk and return are positively associated. The fundamental empirical result obtained is that in most industries the average level of return on equity is negatively correlated with the variance of the returns on equity.[2] This result was obtained in 58 of the 85 Value Line industries tested. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
An Examination of the Relationship Between Firm Size and Profitability
Author: V. Ganeshan
Publisher:
ISBN:
Category :
Languages : en
Pages : 146
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 146
Book Description
Firm Size and Profitability
Author: Aloy Niresh
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Book Description
The purpose of this study is to explore the effects of firm size on profitability of quoted manufacturing firms in Sri Lanka. In this study, data of 15 companies which were active in Colombo Stock Exchange (CSE) between the years 2008 to 2012 has been used. As indicators of firm profitability, Return on Assets and Net Profit have been used whereas Total Assets and Total Sales have been utilized as indicators of firm size. Correlation and regression methods have been used in the empirical analysis. There is no indicative relationship between firm size and profitability of listed manufacturing firms, the findings reveal. In addition, the results showed that firm size has no profound impact on profitability of the listed manufacturing firms in Sri Lanka.
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Book Description
The purpose of this study is to explore the effects of firm size on profitability of quoted manufacturing firms in Sri Lanka. In this study, data of 15 companies which were active in Colombo Stock Exchange (CSE) between the years 2008 to 2012 has been used. As indicators of firm profitability, Return on Assets and Net Profit have been used whereas Total Assets and Total Sales have been utilized as indicators of firm size. Correlation and regression methods have been used in the empirical analysis. There is no indicative relationship between firm size and profitability of listed manufacturing firms, the findings reveal. In addition, the results showed that firm size has no profound impact on profitability of the listed manufacturing firms in Sri Lanka.
Profitability and the Size of Firm
Author: Peter Edward Hart
Publisher:
ISBN:
Category :
Languages : en
Pages : 5
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 5
Book Description
Profitability Patterns and Firm Size
Author: Michael Edmond Francis Treacy
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 80
Book Description
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 80
Book Description
Diversification and Profitability Among Large Food Processing Firms
Author: Richard J. Arnould
Publisher:
ISBN:
Category : Food industry and trade
Languages : en
Pages : 56
Book Description
Publisher:
ISBN:
Category : Food industry and trade
Languages : en
Pages : 56
Book Description
Profitability and Size of Firm
Author: Herman O. Stekler
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 0
Book Description
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 0
Book Description
Effects of Corporate Size on Efficiency and Profitability
Author: Richards Clinton Osborn
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 96
Book Description
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 96
Book Description