Impact of Total Assets and Net Income on Return on Equity of Small Medium Enterprises of Pakistan

Alvi, Mohsin and Ikram, Midra (2015): Impact of Total Assets and Net Income on Return on Equity of Small Medium Enterprises of Pakistan. Published in: International Journal of Research in Commerce, Economics & Management , Vol. 5, No. 5 (1 May 2015): pp. 50-51.

Abstract

An attempt was done in order to reveal the bounding of snap shot and financial period of a firm with gaining value from the stock market. A study was conducted in the Pakistan context where rate of economy is at developing phase. It was assumed that the change in return of equity is a cause of Net income and entire assets of a firm. 11 years of data was taken from 50 small medium enterprises that was the reason of gathering 550 observations as a sample size and were put into analysis purpose to justify the hypotheses. Regression was put as a statistical tool with analysis of variance in order to test the research model that was a reason to confirm the impact of total assets and net income on return on equity. It was recommended to augment the size of sample for strong building the relationship among variables. A suggestions were not only restricted at number of observations but further study can be extended to find out the relationship and association with other factor by using same methodology in different context.

• Item Type: MPRA Paper
• Language: English
• Keywords: Total Assets, Net Income, ROE, SMEs, Regression, Anova
• Subjects: F - International Economics > F3 - International Finance; G - Financial Economics > G3 - Corporate Finance and Governance; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration

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