A relationship between financial factors and profitability of construction companies in Malaysia / Nuratika Abu Amar

This study attempts to examine the determinants public based construction companies' profitability in Malaysia. Many construction industry which is public listed in Malaysia has registered in Bursa Malaysia but only certain of the companies become well-known and stable. This research to find out the relationship between financial factors and profitability in the construction companies other than top public listed companies. The construction industry has changed significantly over the last two decades due to the effects of globalization, delivery system innovations, increase competition, and the application of information technology. Industry professionals know that to shive in these times they need to manage their performance more efficiently and modify their business strategies to maintain and improve profitability and increase the company value. However, traditional theory and understanding of profitability management are not flexible and powerful enough to lead construction firms to a higher performance in the rapidly changing market. It has been a widespread and crucial problem in the construction industry that profitability appears low, unreliable, and unmanageable. Thus, this study to analyse the profitability of construction companies in Malaysia. It use profitability (Dependent Variable), liquidity, leverage, firm size and growth of sales (Independent Variables). The data will use panel quarterly data from 2004 until 2014. The result shows that liquidity, leverage and growth of sales has significant relationship towards profitability of construction companies in Malaysia.