A quantitative analysis of firms profitability determinant : Evidence from consumer industry in Malaysia / Amirul Aqram Ahmad Zainurin

This research paper attempts to investigate the determinant of firm profitability from consumer industry in Malaysia. For this purpose, 20 companies which is consumer industry that have listed in Bursa Malaysia were used and tested using panel data regression model as tool embedded in STATA Software over the period of 2005 until 2014 in relation to firm profitability. The profitability ratio of Return on Asset (ROA) is used as a financial indicator to measure firm profitability is a dependent variable and for independent variable that been use is total asset (TA ) have been use as indicator of size, while liquidity will be measure by current ratio (CR), leverage will be measure by debt equity ratio (DER) and lastly persistency of profitability will be measure by the lagged of ROA (Pt-i) . According to the result of the study, this research indicates that firm size are important determinant of firm profitability with positive relation. While liquidity, leverage and persistency had a negative relation on firm profitability.