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Impact of Firm Specific Factors on Profitability: Evidence from the Engineering Industry of Bangladesh

Author

Listed:
  • Ummay Mahima Ima

    (Bangladesh University of Professionals, Mirpur Cantonment, Dhaka, Bangladesh.)

  • Nurun Nahar

    (Bangladesh Army University of Science and Technology, Saidpur Cantonment, Nilphamari, Bangladesh.)

Abstract

The paper analyses the impact of the firm-specific factors on the profitability of the engineering industry of Bangladesh. This study used 22-year (2000-2021) panel data of a total of 13 companies of this industry. According to the findings of the study, the factors that have the most impact on a business's capacity to earn a profit are its age, asset turnover ratio, and operating profit margin. Size and operating profit margin are two of the factors that have a positive impact on a company's profitability. On the other hand, age and asset turnover ratio are factors that have a negative impact on a company's profitability. The findings could be of use to a wide variety of stakeholders in assisting them in making decisions pertaining to this industry.

Suggested Citation

  • Ummay Mahima Ima & Nurun Nahar, 2022. "Impact of Firm Specific Factors on Profitability: Evidence from the Engineering Industry of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 13(1), pages 100-106.
    • Handle: RePEc:aif:journl:v:13:y:2022:i:1:p:100-106
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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