Impact of profitability elements on the food and beverage industry in Malaysia / Ain Nurnazhifa Zubir ... [et al.]

This study investigates the impact of profitability on Malaysia's food and beverage industry, analysing four independent variables: leverage, liquidity, growth, and productivity. The sample comprised 35 listed companies in the sector, and ordinary least square (OLS) regression was used for data analysis. The results indicate a significant negative correlation between liquidity and profitability, while growth and productivity have a positive influence on profitability. These findings diverge from prior research, which suggested a negative effect of liquidity on profitability and a positive impact from growth, leverage, and productivity. However, certain limitations exist, such as the small sample size and exclusion of sub-sectors. Future research should consider a more diverse and extensive sample, including private firms, to yield comprehensive results. Additionally, adopting novel data gathering methods could enhance the study's quality and scope. Policymakers and investors can benefit from this study's insights to foster growth and informed decision-making within the food and beverage industry.