IMPACTS OF FIRM-SPECIFIC FACTORS AND MACROECONOMIC FACTORS AGAINST MICROSOFT’S PERFORMANCE

Kah Chon, Ooi (2019): IMPACTS OF FIRM-SPECIFIC FACTORS AND MACROECONOMIC FACTORS AGAINST MICROSOFT’S PERFORMANCE.

Abstract

The purpose of this study is to identify the relationship of firm-specific factors and macroeconomics factors towards the Microsoft’s performance, return on assets (ROA) of Microsoft Corporation in United States over the five years. The company that chosen by the researcher is Microsoft Corporation which is in software industry. The analysis is based on the sample of data in Microsoft from 2014 to 2018. This study has conducted a trend analysis towards return on assets (ROA), credit ratio, average collection period, operating margin, macroeconomic environment, price changes and corporate governance index to figure out the variables that influence the performance of the company. Researcher has used Statistical Package for Social Sciences (SPSS) tool to identify the relationship between return of assets (ROA) with internal and external variables which include SPSS output of descriptive analysis, correlation, coefficient, modal summary and ANOVA table. The finding showed that Microsoft’s performance can be influenced by the internal and external environment. The study showed that Microsoft’ performance is significantly influenced by current ratio and operating margin. However, for the external variables, interest rate and gross domestic product (GDP) are influencing Microsoft’s return on assets (ROA).

• Item Type: MPRA Paper
• Language: English
• Keywords: Firm-specific factors, Macroeconomics factors, Microsoft’s performance, Significantly influence
• 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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