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The Effects Of Liquidity Risk And Market Risk On Mcdonald’S Corporation Performance From 2014 To 2018

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  • Chai, Wei Jian

Abstract

Profitability is a crucial aspect that in the study of the company namely McDonald’s Corporation. The main goal of this study is to determine the impacts of liquidity and market risk towards profitability or return on assets of McDonald’s Corporation from 2014 to 2018. As a result, the analysis shows that quick ratio as liquidity risk and standard deviation as the market risk that influences the profitability of McDonald’s Corporation the most along the period 2014 to 2018. This study also pointed out the suitable solutions for McDonald’s Corporation, which are diversify investments by using more cash and increase the share price by monitoring company performance in generating higher profits.

Suggested Citation

  • Chai, Wei Jian, 2019. "The Effects Of Liquidity Risk And Market Risk On Mcdonald’S Corporation Performance From 2014 To 2018," MPRA Paper 97268, University Library of Munich, Germany, revised 15 Nov 2019.
    • Handle: RePEc:pra:mprapa:97268
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    References listed on IDEAS

    as
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    5. Sehrish Gul & Faiza Irshad & Khalid Zaman, 2011. "Factors Affecting Bank Profitability in Pakistan," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(39), pages 61-87, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    ROA; Quick ratio; standard deviation; market risk; Corporate Governance; company performance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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