The impact of leverage, liquidity and firm size towards profitability of technology companies listed in Bursa Malaysia / Nur Ameera Faseeha Ramlee

The purpose of this paper is to discover interrelationship between Financial Leverage, Liquidity and Firm size and the performance of organizations and also to discover the effect of leverage, liquidity and firm size on the performance of the organizations. The target population of this study is 70 technology companies listed in Bursa Malaysia. The panel data to be used is from 2007 to 2016. This study used secondary data which is collected from Bursa Malaysia official website which they provide the company’s annual report. The dependent variable which is profitability is measured using return on assets (ROA) and return on equity (ROE). The independent variables which are leverage is measured using total debts to total assets (DTA) and total debts to total equity (DTE), liquidity is measured using current ratio (CR) and quick ratio (QR) and lastly, firm size is calculated using logarithm of assets (LOA) and logarithm of equity (LOE). The data which was collected was analysed using correlation and regression statistics. Analysed data was presented in tables. The results from the analysis are negative between leverage and profitability, positive between liquidity and profitability and also positive between firm size and profitability.