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Year 2020, , 171 - 181, 30.06.2020

Md. Atiqullah Khan

https://doi.org/10.17261/Pressacademia.2020.1222

Abstract

References

  • Abeyrathna, S., and Priyadarshana, A. (2019). Impact of Firm size on Profitability. International Journal Of Scientific And Research Publications (IJSRP), 9(6), p9081. doi: 10.29322/ijsrp.9.06.2019.p9081
  • Akben-Selcuk, E. (2016). Does Firm Age Affect Profitability? Evidence from Turkey. International Journal Of Economic Sciences, V(3). doi: 10.20472/es.2016.5.3.001
  • Ani, M. (2014). Effects of Assets Structure on the Financial Performance: Evidence From Sultanate of Oman. Journal Of US-China Public Administration, 11(2), 170-179.
  • Becker-Blease, J., Kaen, F., Etebari, A., and Bauman, H. (2010). Employees, firm size and profitability in U.S. manufacturing industries. Investment Management And Financial Innovations, 7(2), 7-23.
  • Cho, D., and Kim, J. (2007). Outside Directors, Ownership Structure and Firm Profitability in Korea. Corporate Governance: An International Review, 15(2), 239-250. doi: 10.1111/j.1467-8683.2007.00557.x
  • Coad, A. (2016). Firm age: a survey. Journal Of Evolutionary Economics, 28(1), 13-43. doi: 10.1007/s00191-016-0486-0
  • Coad, A., Daunfeldt, S., and Halvarsson, D. (2015). Bursting into Life: Firm Growth and Growth Persistence by Age. SSRN Electronic Journal. doi: 10.2139/ssrn.2616759
  • Cowling, M., and Tanewski, G. (2018). On the productive efficiency of Australian businesses: firm size and age class effects. Small Business Economics, 53(3), 739-752. doi: 10.1007/s11187-018-0070-0
  • Fareed, Z., Ali, Z., Shahzad, F., Nazir, M., and Ullah, A. (2016). Determinants of Profitability: Evidence from Power and Energy Sector. Studia Universitatis Babe-Bolyai Oeconomica, 61(3), 59-78. doi: 10.1515/subboec-2016-0005
  • Hui, H., Radzi, C., Jenatabadi, H., Kashim, F., and Radu, S. (2013). The Impact of Firm Age and Size on the Relationship among Organizational Innovation, Learning, and Performance: A Moderation Analysis in Asian Food Manufacturing Companies. Interdisciplinary Journal Of Contemporary Research Business, 5(4), 166-174.
  • Ilaboya, O., and Ohiokha, I. (2016). Firm Age, Size and Profitability Dynamics: A Test of Learning by Doing and Structural Inertia Hypotheses. Business And Management Research, 5(1), 29-39. doi: 10.5430/bmr.v5n1p29
  • Isık, O., Aydın Unal, E., and Unal, Y. (2017). THE EFFECT OF FIRM SIZE ON PROFITABILITY: EVIDENCE FROM TURKISH MANUFACTURING SECTOR. Pressacademia, 6(4), 301-308. doi: 10.17261/pressacademia.2017.762
  • John, A., and Adebayo, O. (2013). Effect of Firm Size on Profitability: Evidence from Nigerian Manufacturing Sector. Prime Journal Of Business Administration And Management (BAM), 3(9), 1171-1175.
  • Kartikasari, D., and Merianti, M. (2016). The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies in Indonesia. International Journal Of Economics And Financial Issues, 6(2), 409-413.
  • Liu, K. (2018). Government Ownership in Listed Firms Around the World. Studies In Business And Economics, 13(2), 131-146. doi: 10.2478/sbe-2018-0025
  • Light Engineering Sector Bangladesh. (2020). Retrieved 8 May 2020, from http://www.projectsprofile.com/info/potential_one.html
  • Makhlouf, M., Laili, N., Basah, M., and Ramli, N. (2017). Board of Directors’ Effectiveness and Firm Performance: Evidence from Jordan. Research Journal Of Finance And Accounting, 8(18), 23-34.
  • Mollah, S., Al Farooque, O., and Karim, W. (2012). Ownership structure, corporate governance and firm performance. Studies In Economics And Finance, 29(4), 301-319. doi: 10.1108/10867371211266937
  • Navaretti, G., Castellani, D., and Pieri, F. (2012) (pp. 1-30). Dhaka: European Commission’s Seventh Framework Programme. Retrieved from https://www.bruegel.org/wp-content/uploads/2015/09/efige_wp60_3108121.pdf
  • Okwo, I., Okelue, U., and Nweze, A. (2012). Investment in Fixed Assets and Firm Profitability: Evidence from the Nigerian Brewery Industry. European Journal Of Business And Management, 4(20), 10-18.
  • Oyelade, A. (2019). The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria. Asian Development Policy Review, 7(1), 1-11. doi: 10.18488/journal.107.2019.71.1.11
  • Pagano, P., and Schivardi, F. (2003). Firm Size Distribution and Growth*. Scandinavian Journal Of Economics, 105(2), 255-274. doi: 10.1111/1467-9442.t01-1-00008
  • Pervan, M., Pervan, I., and Ćurak, M. (2017). The Influence of Age on Firm Performance: Evidence from the Croatian Food Industry. Journal Of Eastern Europe Research In Business And Economics, 1-9. doi: 10.5171/2017.618681
  • Rizqia, D., Aisjah, S., and Sumaiti. (2013). Effect of Managerial Ownership, Financial Leverage, Profitability, Firm Size, and Investment Opportunity on Dividend Policy and Firm Value. Research Journal Of Finance And Accounting, 4(11), 120-130.
  • Stančić, P., Čupić, M., and Obradović, V. (2014). Influence of board and ownership structure on bank profitability: evidence from South East Europe. Economic Research-Ekonomska Istraživanja, 27(1), 573-589. doi: 10.1080/1331677x.2014.970450
  • Warrad, L., and Omari, R. (2015). The Impact of Turnover Ratios on Jordanian Services Sectors’ Performance. Journal Of Modern Accounting And Auditing, 11(2), 78-85. doi: 10.17265/1548-6583/2015.02.001

EFFECTS OF AGE, SIZE, SPONSOR AND GOVERNMENT SHAREHOLDINGS ON PROFITABILITY: EVIDENCE FROM ENGINEERING INDUSTRY OF BANGLADESH

Year 2020, , 171 - 181, 30.06.2020

Md. Atiqullah Khan

https://doi.org/10.17261/Pressacademia.2020.1222

Abstract

Purpose- This paper aims at investigating the effects of age, size, fixed assets utilization, sponsor and government shareholdings on the profitability of engineering industry of Bangladesh for the period of 2000-2019.
Methodology- This paper analyzed 37 out of 39 companies under engineering industry listed on Dhaka Stock Exchange. Fixed effects model has been applied after deciding this from Hausman test to estimate the effects of age, size, fixed asset utilization, sponsor and government shareholdings on the profitability.
Findings- Size, fixed asset utilization, and sponsor shareholding have significant impact on profitability. While fixed asset utilization has positive impact and age, size, sponsor shareholding and government shareholding have negative impact on it. Mixed influences of learning effect and size effect are experienced among the firms.
Conclusion- The findings from the analysis are diversified in nature. The investors and policy makers should have in depth insight to make better decision.

Keywords

Age effect size effect shareholding profitability engineering

References

  • Abeyrathna, S., and Priyadarshana, A. (2019). Impact of Firm size on Profitability. International Journal Of Scientific And Research Publications (IJSRP), 9(6), p9081. doi: 10.29322/ijsrp.9.06.2019.p9081
  • Akben-Selcuk, E. (2016). Does Firm Age Affect Profitability? Evidence from Turkey. International Journal Of Economic Sciences, V(3). doi: 10.20472/es.2016.5.3.001
  • Ani, M. (2014). Effects of Assets Structure on the Financial Performance: Evidence From Sultanate of Oman. Journal Of US-China Public Administration, 11(2), 170-179.
  • Becker-Blease, J., Kaen, F., Etebari, A., and Bauman, H. (2010). Employees, firm size and profitability in U.S. manufacturing industries. Investment Management And Financial Innovations, 7(2), 7-23.
  • Cho, D., and Kim, J. (2007). Outside Directors, Ownership Structure and Firm Profitability in Korea. Corporate Governance: An International Review, 15(2), 239-250. doi: 10.1111/j.1467-8683.2007.00557.x
  • Coad, A. (2016). Firm age: a survey. Journal Of Evolutionary Economics, 28(1), 13-43. doi: 10.1007/s00191-016-0486-0
  • Coad, A., Daunfeldt, S., and Halvarsson, D. (2015). Bursting into Life: Firm Growth and Growth Persistence by Age. SSRN Electronic Journal. doi: 10.2139/ssrn.2616759
  • Cowling, M., and Tanewski, G. (2018). On the productive efficiency of Australian businesses: firm size and age class effects. Small Business Economics, 53(3), 739-752. doi: 10.1007/s11187-018-0070-0
  • Fareed, Z., Ali, Z., Shahzad, F., Nazir, M., and Ullah, A. (2016). Determinants of Profitability: Evidence from Power and Energy Sector. Studia Universitatis Babe-Bolyai Oeconomica, 61(3), 59-78. doi: 10.1515/subboec-2016-0005
  • Hui, H., Radzi, C., Jenatabadi, H., Kashim, F., and Radu, S. (2013). The Impact of Firm Age and Size on the Relationship among Organizational Innovation, Learning, and Performance: A Moderation Analysis in Asian Food Manufacturing Companies. Interdisciplinary Journal Of Contemporary Research Business, 5(4), 166-174.
  • Ilaboya, O., and Ohiokha, I. (2016). Firm Age, Size and Profitability Dynamics: A Test of Learning by Doing and Structural Inertia Hypotheses. Business And Management Research, 5(1), 29-39. doi: 10.5430/bmr.v5n1p29
  • Isık, O., Aydın Unal, E., and Unal, Y. (2017). THE EFFECT OF FIRM SIZE ON PROFITABILITY: EVIDENCE FROM TURKISH MANUFACTURING SECTOR. Pressacademia, 6(4), 301-308. doi: 10.17261/pressacademia.2017.762
  • John, A., and Adebayo, O. (2013). Effect of Firm Size on Profitability: Evidence from Nigerian Manufacturing Sector. Prime Journal Of Business Administration And Management (BAM), 3(9), 1171-1175.
  • Kartikasari, D., and Merianti, M. (2016). The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies in Indonesia. International Journal Of Economics And Financial Issues, 6(2), 409-413.
  • Liu, K. (2018). Government Ownership in Listed Firms Around the World. Studies In Business And Economics, 13(2), 131-146. doi: 10.2478/sbe-2018-0025
  • Light Engineering Sector Bangladesh. (2020). Retrieved 8 May 2020, from http://www.projectsprofile.com/info/potential_one.html
  • Makhlouf, M., Laili, N., Basah, M., and Ramli, N. (2017). Board of Directors’ Effectiveness and Firm Performance: Evidence from Jordan. Research Journal Of Finance And Accounting, 8(18), 23-34.
  • Mollah, S., Al Farooque, O., and Karim, W. (2012). Ownership structure, corporate governance and firm performance. Studies In Economics And Finance, 29(4), 301-319. doi: 10.1108/10867371211266937
  • Navaretti, G., Castellani, D., and Pieri, F. (2012) (pp. 1-30). Dhaka: European Commission’s Seventh Framework Programme. Retrieved from https://www.bruegel.org/wp-content/uploads/2015/09/efige_wp60_3108121.pdf
  • Okwo, I., Okelue, U., and Nweze, A. (2012). Investment in Fixed Assets and Firm Profitability: Evidence from the Nigerian Brewery Industry. European Journal Of Business And Management, 4(20), 10-18.
  • Oyelade, A. (2019). The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in Nigeria. Asian Development Policy Review, 7(1), 1-11. doi: 10.18488/journal.107.2019.71.1.11
  • Pagano, P., and Schivardi, F. (2003). Firm Size Distribution and Growth*. Scandinavian Journal Of Economics, 105(2), 255-274. doi: 10.1111/1467-9442.t01-1-00008
  • Pervan, M., Pervan, I., and Ćurak, M. (2017). The Influence of Age on Firm Performance: Evidence from the Croatian Food Industry. Journal Of Eastern Europe Research In Business And Economics, 1-9. doi: 10.5171/2017.618681
  • Rizqia, D., Aisjah, S., and Sumaiti. (2013). Effect of Managerial Ownership, Financial Leverage, Profitability, Firm Size, and Investment Opportunity on Dividend Policy and Firm Value. Research Journal Of Finance And Accounting, 4(11), 120-130.
  • Stančić, P., Čupić, M., and Obradović, V. (2014). Influence of board and ownership structure on bank profitability: evidence from South East Europe. Economic Research-Ekonomska Istraživanja, 27(1), 573-589. doi: 10.1080/1331677x.2014.970450
  • Warrad, L., and Omari, R. (2015). The Impact of Turnover Ratios on Jordanian Services Sectors’ Performance. Journal Of Modern Accounting And Auditing, 11(2), 78-85. doi: 10.17265/1548-6583/2015.02.001
There are 26 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Md. Atiqullah Khan This is me 0000-0002-4704-5594

Publication Date June 30, 2020
Published in Issue Year 2020

Cite

APA Khan, M. A. (2020). EFFECTS OF AGE, SIZE, SPONSOR AND GOVERNMENT SHAREHOLDINGS ON PROFITABILITY: EVIDENCE FROM ENGINEERING INDUSTRY OF BANGLADESH. Journal of Business Economics and Finance, 9(2), 171-181. https://doi.org/10.17261/Pressacademia.2020.1222

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