The Determinants of Profitability for Kerjaya Prosepk

Lim, Yi Lam (2017): The Determinants of Profitability for Kerjaya Prosepk.

Abstract

The construction industry as one of the most unsafe industry because it is highly exposed to variety of risk. An effective risk management system practise in the construction company will definitely reduce the risk exposure. The purpose of this study is to identify the relationship between the profitability performances of Kerjaya Perspek with exposure risk factor and macroeconomic factor. The second purpose of this study is to understand how the assets size of the company will affect the performance of the company as well. GDP, inflation rate and exchange rate will be utilized to see how the macroeconomic factor impact on the profitability of Kerjaya. The profitability ratio, liquidity ratio, financial ratio measured by using the financial data that obtain from annual report of Kerjaya from year 2011 to 2015. The data were analysed by using regression linear to evaluate the relationships between the variables. In this study shows only two variable which are ROE and D/E is significantly to ROA with the high impact to the profitability. However, liquidity, GDP, inflation rate, exchange rate and total assets size are not significant to ROA with the low impact to the profitability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Firm specific factors, liquidity risk, profitability and macroeconomic factor
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance

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