IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v13y2022i1p100-106.html
   My bibliography  Save this article

Impact of Firm Specific Factors on Profitability: Evidence from the Engineering Industry of Bangladesh

Author

Listed:
  • Ummay Mahima Ima

    (Bangladesh University of Professionals, Mirpur Cantonment, Dhaka, Bangladesh.)

  • Nurun Nahar

    (Bangladesh Army University of Science and Technology, Saidpur Cantonment, Nilphamari, Bangladesh.)

Abstract

The paper analyses the impact of the firm-specific factors on the profitability of the engineering industry of Bangladesh. This study used 22-year (2000-2021) panel data of a total of 13 companies of this industry. According to the findings of the study, the factors that have the most impact on a business's capacity to earn a profit are its age, asset turnover ratio, and operating profit margin. Size and operating profit margin are two of the factors that have a positive impact on a company's profitability. On the other hand, age and asset turnover ratio are factors that have a negative impact on a company's profitability. The findings could be of use to a wide variety of stakeholders in assisting them in making decisions pertaining to this industry.

Suggested Citation

  • Ummay Mahima Ima & Nurun Nahar, 2022. "Impact of Firm Specific Factors on Profitability: Evidence from the Engineering Industry of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 13(1), pages 100-106.
    • Handle: RePEc:aif:journl:v:13:y:2022:i:1:p:100-106
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/948.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-13-issue-1/4949
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patrizio Pagano & Fabiano Schivardi, 2003. "Firm Size Distribution and Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 255-274, June.
    2. Ofuan. J. Ilaboya & Izien. F. Ohiokha, 2016. "Firm Age, Size and Profitability Dynamics: A Test of Learning by Doing and Structural Inertia Hypotheses," Business and Management Research, Business and Management Research, Sciedu Press, vol. 5(1), pages 29-39, March.
    3. Aduralere Opeyemi, OYELADE, 2019. "The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(1), pages 1-11, March.
    4. Aduralere Opeyemi, OYELADE, 2019. "The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(1), pages 1-11.
    5. Dwi Kartikasari & Marisa Merianti, 2016. "The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 409-413.
    6. Dong‐Sung Cho & Jootae Kim, 2007. "Outside Directors, Ownership Structure and Firm Profitability in Korea," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 239-250, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonathan Mwau Mulwa, 2020. "Firm Size And Performance: An Econometric Analysis Of The Financial Performance Of Deposit Taking Microfinance Institutions In Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(5), pages 56-62, May.
    2. Sari, Dyah Wulan & Restikasari, Wenny & Ajija, Shochrul Rohmatul & Tarbiyah Islamia, Haura Azzara & Muchtar, Darmawati, 2021. "The Impacts of Foreign Direct Investment and Export Expansion on the Performance of the High-Tech Manufacturing Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 91-105.
    3. Olayiwola Kabirat Abiola & Intan Waheedah Othman, 2022. "Financial Management and Firms' Profitability: Evidence from Nigerian Manufacturing Listed Firms," Business and Economic Research, Macrothink Institute, vol. 12(2), pages 190-201, December.
    4. Alexandra Horobet & Georgiana Vrinceanu & Lucian Belascu, 2020. "Size And Firm Performance In Extractive Industries: Lessons For Entrepreneurs," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 14(1), pages 202-215.
    5. Kennedy A. M. Gichira & Prof. Isaac M. Nkari & Dr. Catherine K. Kaimenyi, 2023. "Green Human Resource Management Practices and Performance: Testing the Moderating Role of Firm Size Using Evidence from Firms Listed on the Nairobi Securities Exchange, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 292-301, November.
    6. Serban Mogos & Alex Davis & Rui Baptista, 2021. "High and sustainable growth: persistence, volatility, and survival of high growth firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 135-161, March.
    7. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    8. Concetta Castiglione & Davide Infante & Janna Smirnova, 2022. "Do female managers perform better? Evidence from Italian manufacturing firms," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2194-2209, April.
    9. Stefano Schiavo, 2008. "Financial Integration, GDP Correlation and the Endogeneity of Optimum Currency Areas," Economica, London School of Economics and Political Science, vol. 75(297), pages 168-189, February.
    10. Mukhopadhyay, Jhuma & Chakraborty, Indrani, 2017. "Foreign institutional investment, business groups and firm performance: Evidence from India," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 454-465.
    11. Elisabetta Trevisan, 2008. "Enforcement of Employment Protection and the hiring behaviour of firms. Evidence from a large Italian region," Working Papers 2008_25, Department of Economics, University of Venice "Ca' Foscari".
    12. Bernard Kwamena Cobbina Essel & Faizal Adams & Kwadwo Amankwah, 2019. "Effect of entrepreneur, firm, and institutional characteristics on small-scale firm performance in Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-20, December.
    13. Thorsten Beck, 2003. "Small and medium enterprises, growth, and poverty : cross-country evidence," Policy Research Working Paper Series 3178, The World Bank.
    14. Nicholas Crafts & Marco Magnani, 2011. "The Golden Age and the Second Globalization in Italy," Quaderni di storia economica (Economic History Working Papers) 17, Bank of Italy, Economic Research and International Relations Area.
    15. Fabiano Schivardi & Roberto Torrini, 2004. "Firm size distribution and employment protection legislation in Italy," Temi di discussione (Economic working papers) 504, Bank of Italy, Economic Research and International Relations Area.
    16. Byung-Seong Min & Peter Verhoeven, 2013. "Outsider Board Activity, Ownership Structure and Firm Value: Evidence from Korea," International Review of Finance, International Review of Finance Ltd., vol. 13(2), pages 187-214, June.
    17. Associate Prof. J.O Arumona & Associate Prof. Orbunde B.B & BELLO, Musibau, 2023. "Liquidity and Working Capital Management Practices on Firm Value of Listed Non-Financial Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 1049-1066, November.
    18. Claudio Michelacci & Fabiano Schivardi, 2013. "Does Idiosyncratic Business Risk Matter For Growth?," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 343-368, April.
    19. Farasat A. S. Bokhari & Franco Mariuzzo & Anna Rita Bennato, 2021. "Innovation and growth in the UK pharmaceuticals: the case of product and marketing introductions," Small Business Economics, Springer, vol. 57(1), pages 603-634, June.
    20. Antonio Ciccone & Elias Papaioannou, 2016. "Estimating Cross-Industry Cross-Country Interaction Models Using Benchmark Industry Characteristics," NBER Working Papers 22368, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:13:y:2022:i:1:p:100-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.