Factors influencing profitability of construction companies in Malaysia/ Muhammad ‘Ifwat Kamaluddin

As we can see at Malaysia Statistic trend there are shown volatility in the profitability of Construction Company for the recent year. The volatility in the profitability because of so many reason. Thus, the intention of this research was to determine the effect of current ratio, debt ratio, size of company and tangibility towards the volatility of the profitability of the Construction Company in Malaysia. Data was collected from DataStream from the year of 2007 to 2016. The data gain from Department of Statistic Malaysia, unpublished research paper and published research paper. The data were analyse by using Least Square analysis and panel data analysis. It was found that the change of debt ratio, and the tangibility give significance impact to the volatility of the profitability of Construction Company. The debt ratio and tangibility shows significance negatively relationship. The result show current ratio and size of company has insignificance relationship to the profitability. The current ratio shows negative relationship while size show positive relationship. Thus, the company need to manage their debt and asset wisely and fully used of it to remain competence in market.