The determinants of profitability of consumer product sector in Malaysia / Umi Sakinah Zakaria

Using financial accounting panel data from the COMPUSTAT database for a representative sample of 60 companies of consumer product sector, the researcher develop a statistical methodology that links managerial decisions related to profitability. This case study is about determinant of profitability of Consumer Product Sector firm in Malaysia developed from year to year and the companies involved only from public listed in Bursa Malaysia. By conducting panel data analysis, the researcher found that the determinants factors such as financial leverage, financial efficiency, financial liquidity and size of firm are significantly related to profitability of the firm. In addition, financial efficiency, financial liquidity, and size of firm are significantly and have a positive relationship to the profitability of the firm. Further, financial leverage has a negative relationship with the profitability of the firm.