Author: Fred R. Kaen
Publisher:
ISBN:
Category :
Languages : en
Pages : 72
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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.
Author: University of California, Berkeley. Institute of Business and Economic Research
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 128
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Author: Aloy Niresh
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
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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.
Author: Bjørn Espen Eckbo
Publisher: Elsevier
ISBN: 0080488919
Category : Business & Economics
Languages : en
Pages : 559
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Book Description
Judging by the sheer number of papers reviewed in this Handbook, the empirical analysis of firms’ financing and investment decisions—empirical corporate finance—has become a dominant field in financial economics. The growing interest in everything “corporate is fueled by a healthy combination of fundamental theoretical developments and recent widespread access to large transactional data bases. A less scientific—but nevertheless important—source of inspiration is a growing awareness of the important social implications of corporate behavior and governance. This Handbook takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues, ranging from econometric methodology, to raising capital and capital structure choice, and to managerial incentives and corporate investment behavior. The surveys are written by leading empirical researchers that remain active in their respective areas of interest. With few exceptions, the writing style makes the chapters accessible to industry practitioners. For doctoral students and seasoned academics, the surveys offer dense roadmaps into the empirical research landscape and provide suggestions for future work. *The Handbooks in Finance series offers a broad group of outstanding volumes in various areas of finance *Each individual volume in the series should present an accurate self-contained survey of a sub-field of finance *The series is international in scope with contributions from field leaders the world over
Author: V. Ganeshan
Publisher:
ISBN:
Category :
Languages : en
Pages : 146
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Book Description
Author: David J. Storey
Publisher: Routledge
ISBN: 113483988X
Category : Business & Economics
Languages : en
Pages : 328
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Book Description
This study, originally published in 1987, addresses the question of small firm performance. Drawing on an extensive database containing financial, employment and ownership data for several thousand small firms, the book examines whether small firms do actually provide jobs, whether they grow and why small firms fail. Guidance is given on how to spot the signs of impending failure in a small business, which is of use to accountants small business PR actioners and government grant providers.
Author: Michael Treacy
Publisher: Forgotten Books
ISBN: 9780365499718
Category : Mathematics
Languages : en
Pages : 50
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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.
Author: Harborne W. Stuart, Jr.
Publisher: MIT Press
ISBN: 0262529408
Category : Business & Economics
Languages : en
Pages : 225
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Book Description
A new way to determine whether a business strategy will lead to profitability. This book teaches readers to understand profitability in a systematic way, equipping them to provide logically coherent answers to questions about whether a new venture will be profitable, if changes in business strategy will generate an increase in profits, or if “staying the course” will result in continued profitability. Unlike books by business gurus that offer one-size-fits-all advice, this book starts from the premise that you, the reader, are in the best position to make difficult judgments about your business. It shows how to turn these judgments into coherent analysis, presenting state-of-the art theory for understanding business strategy from an economic perspective. The basic building block is the value that is created when the buyer and seller make a deal. In simple terms, if a company is to be profitable, it must make a favorable deal with each and every customer. After setting out key principles and applying them to market situations, the book teaches readers to apply the analysis to their own businesses—in other words, to create their own business game, the main ingredients of which are people and the value that they can create. It addresses how to integrate strategic moves into the book's theory of value creation and competition in order to address the sustainability of a company's profits, the effectiveness of the “invisible hand,” and restrictions to competition. Optional appendixes explain the relevant mathematics.
Author: Peter Edward Hart
Publisher:
ISBN:
Category :
Languages : en
Pages : 5
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Book Description
Author: Michael Edmond Francis Treacy
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 80
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Book Description
