impact of fixed asset on firm profitability in pakistan
RESEARCH TOPIC:
Impact of Fixed Asset on Firm Profitability
ABSTRACT:
The aim of this study is to look at the impact of fixed asset on firm profitability textile, cement and sugar sector in Pakistan. The study is based on sample of three sectors (sugar, cement, and textile) over five year period from 2010 to 2014.We used regression analysis method to show the impact of fixed asset on firm profitability.
The past research shows that investment on non current asset does not have strong impact on corporation profitability.
Findings show that there is a significant relationship between dependent variable (Net
Profit) and the independent variables (fixed assets). We tested the impact of noncurrent asset on firm profitability in Pakistan.
1. Introduction:
No organization can be sustained without some investment in fixed asset. Investment in fixed assets like land, building, plant and machinery, fixtures, fittings and motor vehicle enhances the productive capacity of firms. Profits can be generated by investing in such assets to ensure long term profitability.
Profitability plays a vital role within the structure and development of firm as a result of it measures the performance and success of a firm. It also enhances the reputation of a firm.
Maximizing the profits of firm is one in all the most objectives of managers. The profitability of a firm is so a key concern, Profitability also maximizes neutral price and capitalist price.
This paper shows the impact of firm fixed asset on gain of textile, sugar, and cement sector. The main objective of a business is maximization of profit which is able to cause maximization of shareholders wealth. Examining many relationship among the assets and sales asset utilization provide picture how much corporation begin manage resources.
Asset utilization is especially helpful to companies considering growth or capital investment if production can be increased by improving efficiency of existing resources.
The objective of this
Impact of Fixed Asset on Firm Profitability
ABSTRACT:
The aim of this study is to look at the impact of fixed asset on firm profitability textile, cement and sugar sector in Pakistan. The study is based on sample of three sectors (sugar, cement, and textile) over five year period from 2010 to 2014.We used regression analysis method to show the impact of fixed asset on firm profitability.
The past research shows that investment on non current asset does not have strong impact on corporation profitability.
Findings show that there is a significant relationship between dependent variable (Net
Profit) and the independent variables (fixed assets). We tested the impact of noncurrent asset on firm profitability in Pakistan.
1. Introduction:
No organization can be sustained without some investment in fixed asset. Investment in fixed assets like land, building, plant and machinery, fixtures, fittings and motor vehicle enhances the productive capacity of firms. Profits can be generated by investing in such assets to ensure long term profitability.
Profitability plays a vital role within the structure and development of firm as a result of it measures the performance and success of a firm. It also enhances the reputation of a firm.
Maximizing the profits of firm is one in all the most objectives of managers. The profitability of a firm is so a key concern, Profitability also maximizes neutral price and capitalist price.
This paper shows the impact of firm fixed asset on gain of textile, sugar, and cement sector. The main objective of a business is maximization of profit which is able to cause maximization of shareholders wealth. Examining many relationship among the assets and sales asset utilization provide picture how much corporation begin manage resources.
Asset utilization is especially helpful to companies considering growth or capital investment if production can be increased by improving efficiency of existing resources.
The objective of this
References: Adelegan OJ (2008). Tax, investment and Q: Evidence from firm and industry level data in Dong HP, Su J (2010). The relationship between working capital management and profitability: A Vietnam case. Int. Res. J. Financ. Econ. 49, pp. 59-67. Karaduman HA, Akbas HE, Caliskan AO, Durer S (2011) the relationship between working capital management and Okwo IM (2012). Investment in fixed assets and firm profitability: Evidence from the Nigerian Brewery industry. Eur. J. Bus. Manag. Vol.4, No.20, pp10-17. Owolabi SA, Obida SS (2012). Liquidity management and corporate profitability: A case study of selected manufacturing Business Management Dynamics, Vol.2, No.2, pp.10-25 Panache K (2006). Trends in working capital management Paradogonas TA (2007). The financial performance of large and small firms: Evidence from Greece Sayeed MA, Hogue MS (2009). Impact of assets and liability management on profitability: A study of public vs (on-line:www.Wbom/icconpro.com/30%5D.pdf). Retrieved on 6thAugust, 2013. Uyar A (2009). The relationship of cash conversion cycle with firm size and profitability: An empirical investigation in Turkey Adelegan, O. J (2008) Tax, Investment and Q: Evidence from firm and Industry level data in Nigeria. http://www.eurojournals.com/finance.htm. Retrieved on 5th June, 2011. Ahmed, R. (2010). Nigerian Brewery Sector Brewing rowth; malting value. Vetiva Capital Management Limited