THE IMPACTS OF FIRM-SPECIFIC FACTORS AND MACROECONOMICS FACTORS TOWARDS ADOBE’S PERFORMANCE

Zi Wei, Ch'ng (2019): THE IMPACTS OF FIRM-SPECIFIC FACTORS AND MACROECONOMICS FACTORS TOWARDS ADOBE’S PERFORMANCE.

Abstract

This study aims to examine the impact of firm-specific factors and the macroeconomics factors towards the performance of Adobe Inc. The data for this study is obtained from the annual report of Adobe Inc. from year 2014 to year 2018. The performance of the company is measured by the return on assets. On the other hand, the firm-specific factors are represented by CG index score, average collection period (credit risk), operating margin (operational risk) and current ratio (liquidity risk) while the macroeconomics factors are represented by market risk which include gross domestics products, exchange rate, inflation, interest rate and standard deviation. Data obtained was then being analyzed by using Statistical Package for Social Science (SPSS) version 22. This study applied descriptive analysis, correlation analysis, coefficients and stepwise multiple regression analysis to examine the relationship among the variables. The findings of this study showed that both the operating margin and exchange rate have a significant relationship with the company performance in which they can influence the performance of company. The study has recommended the company can actually reduce their operating expense and create economies of scale in the business operation to improve the operating margin. Moreover, the company can also use the local suppliers or employ the local workers instead of outsource from other countries to deal with changes in exchange rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: Operating Margin, Exchange Rate, Company Performance, Corporate Governance
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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