THE EFFECTS OF LIQUIDITY RISK AND MARKET RISK ON MCDONALD’S CORPORATION PERFORMANCE FROM 2014 TO 2018

Chai, Wei Jian (2019): THE EFFECTS OF LIQUIDITY RISK AND MARKET RISK ON MCDONALD’S CORPORATION PERFORMANCE FROM 2014 TO 2018.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: ROA, Quick ratio, standard deviation, market risk, Corporate Governance, company performance
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; 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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