IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v37y2024i2p167-195.html
   My bibliography  Save this article

Macroeconomic and microeconomic determinants of the profitability of Indian manufacturing firms

Author

Listed:
  • Sumit Kumar Maji
  • Arindam Laha
  • Debasish Sur

Abstract

The present paper seeks to identify the major microeconomic and macroeconomic determinants of profitability of the firms in different sectors of Indian manufacturing industry. This study is based on 515 companies which were selected following stratified random sampling procedure from the ten sub-groups of Indian manufacturing industry chosen by adopting purposive sampling procedure. The data for the period 1999-2000 to 2013-2014 used in this study were taken from various secondary sources. The study revealed that leverage, intellectual capital, sales growth, age, openness and size of the firm amongst the major microeconomic factors and economic growth, inflation and exchange rate amongst the principal macroeconomic variables played significant role in determining profitability of the Indian manufacturing firms during the period under study. Another notable outcome of the study was that the industry sub-sector wise differences in delineating the contribution of specific factors in explaining firm level profitability were noticed.

Suggested Citation

  • Sumit Kumar Maji & Arindam Laha & Debasish Sur, 2024. "Macroeconomic and microeconomic determinants of the profitability of Indian manufacturing firms," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 37(2), pages 167-195.
    • Handle: RePEc:ids:ijbglo:v:37:y:2024:i:2:p:167-195
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=138632
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbglo:v:37:y:2024:i:2:p:167-195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.