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Factors Influencing The Companies' Profitability

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  • Camelia Burja Decemrie

Abstract

The information about company performance, especially about its profitability, is useful in substantiating managerial decisions regarding potential changes in the economic resources that the company will be able to control in the future. This objective aims achieving superior economic results that will increase the company's competitiveness and will satisfy the shareholders' interests. The paper presents some company performance analysis models, which highlight the influencing factors. The models are based on regression analysis, and the obtained results emphasize the strong connection between the profitability of the analyzed company expresses through Return on assets and the management of available resources.

Suggested Citation

  • Camelia Burja Decemrie, 2011. "Factors Influencing The Companies' Profitability," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-3.
    • Handle: RePEc:alu:journl:v:2:y:2011:i:13:p:3
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    References listed on IDEAS

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    1. J P Singh & Shishir Pandey, 2008. "Impact of Working Capital Management in the Profitability of Hindalco Industries Limited," The IUP Journal of Financial Economics, IUP Publications, vol. 0(4), pages 62-72, December.
    2. Iuliana-Ioana Purcarea & Ion Stancu, 2008. "The Influence of R&D Policy on Performance of the Companies Listed with Bucharest Stock Exchange (through Intangible Assets)," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 9(9(526)), pages 03-10, September.
    3. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3‐4), pages 573-588, April.
    4. Marc Deloof, 2003. "Does Working Capital Management Affect Profitability of Belgian Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(3-4), pages 573-588.
    5. Dumitru MatiÅŸ & Alina Beattrice Vladu & Laura Negrea & Lucia Sucala, 2010. "Jones, Dechow And Kasznik Models Significance In The Romanian Economic Environment," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(12), pages 1-25.
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    Cited by:

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    2. María Jesús Segovia-Vargas & María del Mar Camacho-Miñano & Fernanda Cristina Pedrosa Alberto & Vera Gelashvili, 2021. "Sheltered Employment Centres: Sustainability and Social Value," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    3. Botoc Claudiu, 2013. "Profitability - Capital Structure Trade Off: Case Of Publicly Romanian Companies," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 969-975, July.
    4. Ibrahim Abidemi Odusanya & Olumuyiwa Ganiyu Yinusa & Bamidele M. Ilo, 2018. "Determinants of Firm Profitability in Nigeria: Evidence from Dynamic Panel Models," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(1), pages 43-58, January-M.
    5. Tan, Mei Syen, 2019. "Analysis of Firm-Specific and Macroeconomic Factors Affecting the Performance of Hotel Sector in United Kingdom: Profitability and its Determinants," MPRA Paper 97189, University Library of Munich, Germany.
    6. María Jesús Segovia‐Vargas & I. Marta Miranda‐García & Freddy Alejandro Oquendo‐Torres, 2023. "Sustainable finance: The role of savings and credit cooperatives in Ecuador," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 951-980, September.
    7. Chnar Abdullah Rashid, 2019. "Pricing Policy and Its Impact on the Profitability," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 8(3), pages 101-108, July.
    8. Sofia Fonseca & Maria João Guedes & Vítor Conceição Gonçalves, 2022. "Profitability and size of newly established firms," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 957-974, June.
    9. Mazurina Mohd Ali & Nik Noor Ayu Nik Hussin & Erlane K. Ghani, 2019. "Liquidity, Growth and Profitability of Non-financial Public Listed Malaysia: A Malaysian Evidence," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 194-202, May.
    10. Eissa A. Al-Homaidi & Najib H.S. Farhan & Waleed M. Alahdal & Amgad S.D. Khaled & Moatasem M. Qaid, 2021. "Factors affecting the profitability of Indian listed firms: a panel data approach," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 23(1), pages 1-17.
    11. Sewoong Hwang & Jonghyuk Kim, 2021. "Toward a Chatbot for Financial Sustainability," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    12. Sorana VĂTAVU, 2015. "Determinants of Return on Assets in Romania: a Principal Component Analysis," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 8(1s), pages 32-47, February.
    13. Chong, Sze Chin, 2019. "An Analysis of the External and Internal Factors Affecting Honda Motor Company’s Performance," MPRA Paper 97206, University Library of Munich, Germany, revised 18 Nov 2019.

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    More about this item

    Keywords

    financial statements; regression analysis; performance; resource management;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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