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Impact of Total Assets and Net Income on Return on Equity of Small Medium Enterprises of Pakistan

Author

Listed:
  • Alvi, Mohsin
  • Ikram, Midra

Abstract

An attempt was done in order to reveal the bounding of snap shot and financial period of a firm with gaining value from the stock market. A study was conducted in the Pakistan context where rate of economy is at developing phase. It was assumed that the change in return of equity is a cause of Net income and entire assets of a firm. 11 years of data was taken from 50 small medium enterprises that was the reason of gathering 550 observations as a sample size and were put into analysis purpose to justify the hypotheses. Regression was put as a statistical tool with analysis of variance in order to test the research model that was a reason to confirm the impact of total assets and net income on return on equity. It was recommended to augment the size of sample for strong building the relationship among variables. A suggestions were not only restricted at number of observations but further study can be extended to find out the relationship and association with other factor by using same methodology in different context.

Suggested Citation

  • Alvi, Mohsin & Ikram, Midra, 2015. "Impact of Total Assets and Net Income on Return on Equity of Small Medium Enterprises of Pakistan," MPRA Paper 64876, University Library of Munich, Germany, revised 09 Jun 2015.
    • Handle: RePEc:pra:mprapa:64876
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    References listed on IDEAS

    as
    1. Mohsin Hassan Alvi & Usman Kamal, 2015. "Assessing Chinese Currency Regime (2012)," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(2), pages 78-83.
    2. Gavin Cassar & Scott Holmes, 2003. "Capital structure and financing of SMEs: Australian evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 43(2), pages 123-147, July.
    3. Joshua Abor, 2007. "Debt policy and performance of SMEs: Evidence from Ghanaian and South African firms," Journal of Risk Finance, Emerald Group Publishing, vol. 8(4), pages 364-379, August.
    4. Gavin Cassar & Scott Holmes, 2003. "Capital structure and financing of SMEs: Australian evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 43(2), pages 123-147.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Alvi, Mohsin, 2016. "Offshore Outsourcing: A positive perspective from U.S. region," MPRA Paper 69788, University Library of Munich, Germany.

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    More about this item

    Keywords

    Total Assets; Net Income; ROE; SMEs; Regression; Anova;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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