IDEAS home Printed from https://ideas.repec.org/a/sae/padigm/v15y2011i1-2p18-25.html
   My bibliography  Save this article

Does Firm Size Affect Profitability? An Empirical Investigation Of Indian Textile Industry

Author

Listed:
  • Dr. Harish Kumar Singla

Abstract

The present study examines the relationship of firm’s size and profitability, taking into consideration two size variables i.e. Net sales and Total Assets and three profitability variables i.e. PAT/Net Sales, PAT/Total Assets and ROCE of 142 Indian Textile Companies for a period of 10 years that is, from 2001 to 2010. The hypothesis of firm Size affect profitability was tested using nine regression equations in panel data using fixed effects. The empirical findings suggest that firm’s size emerges as an important factor affecting profitability. In terms of the direction, the results show mixed evidence; firm’s size is negatively affecting the PAT/Net sales variable, whereas affecting positively to other variables. The study concludes that the validity and the generalization of the findings are pending future research in other industries or sector.

Suggested Citation

  • Dr. Harish Kumar Singla, 2011. "Does Firm Size Affect Profitability? An Empirical Investigation Of Indian Textile Industry," Paradigm, , vol. 15(1-2), pages 18-25, January.
    • Handle: RePEc:sae:padigm:v:15:y:2011:i:1-2:p:18-25
    DOI: 10.1177/0971890720110104
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971890720110104
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971890720110104?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mukesh Nepal & Rajat Deb, 2022. "Board Characteristics and Firm Performance: Indian Textiles Sector Panorama," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 47(1), pages 74-96, February.
    2. Helan Alias Vaibhavi Kabirdas Alavani & Richa Shukla & Debasis Patnaik, 2024. "An Assessment of the Relationship between Profitability and Energy Intensity for Technology Oriented Manufacturing Firms in India," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 538-549, July.

    More about this item

    Keywords

    Profitability; Size; Textile; PAT/Net sales; PAT/Total Assets; ROCE; Net sales; Total Assets JEL Classification: - C23; G32; L67;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

    Statistics

    Access and download statistics

    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:sae:padigm:v:15:y:2011:i:1-2:p:18-25. 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: SAGE Publications (email available below). General contact details of provider: .

    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.